Accounts Payable & Money Disbursements
In manual accounting method, if there happens an error while getting into and posting the transaction in the books of accounts, then adjustment entries can be passed, for getting correct results. Moreover, adjustment entries are also made to adjust to the matching principle, i.e. the expenses of the accounting interval should match the respective revenues. On the other hand, in computerized accounting, to adjust to the matching ideas journal and vouchers are prepared, however changes entries aren’t handed for rectification of error except the error is an error of precept. In manual accounting, an individual stays involved all the time, with the accounts, to enter and replace transactions, which is tedious and time-consuming too. As against, in computerized accounting, once the transaction is entered, it is routinely updated in all the accounts to which it relates and thus, the process is comparatively quicker.
Drawback: Data Entry Errors
The scholar is required to prepare journal entries within the year of sale and in subsequent years when warranty costs are incurred. Also required are steadiness sheet shows for the 12 months of sale and one subsequent year. While the problem is basic in nature it does take a look at the scholar’s capacity to grasp and apply the sales warranty method. Problem thirteen-7 (Time 25–35 minutes) Purpose–to provide the coed with an opportunity to organize journal entries for guarantee prices underneath the expense guarantee methodology and the money-basis method. The student can also be required to indicate … Read More