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Financial Accounting by P. C. Tulsian

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7 CHAPTER

Subsidiary Books I— Cash Book

NEED FOR SUB-DIVISION OF THE JOURNAL

When the number of transactions is large, it is practically impossible to record all the transactions through one journal because of the following limitations of journal:

  1. The system of recording all the transactions in a journal requires (i) the writing down of the name of the account involved as many times as the transactions occur; and (ii) an individual posting of each account debited and credited and hence involves the repetitive journalising and posting labour.
  2. Such a system does not provide the information on prompt basis.
  3. Such a system does not facilitate the installation of an internal check system since the journal can be handled by only one person.
  4. The journal ...

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