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:
- 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.
- Such a system does not provide the information on prompt basis.
- Such a system does not facilitate the installation of an internal check system since the journal can be handled by only one person.
- The journal ...
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