Bookkeeping Flashcards
why must the data be entered accurately?
otherwise the trail balance will show errors
what happens if debits and credit do not match?
a suspense acc will be created
what happens to the difference if not matched?
it will then be investigated further until the error was located and corrected.
will all errors be picked up by the trail balance?
no
Advantages of using digital book keeping systems
Automatically balances the cash book
Automatically completes the transfer of data from the books of prime entry to the ledgers
Reduces errors
Saves time
Disadvantages of using a digital booking system
Makes duplication of automated and manual entries possible
Can create errors when the amount or frequency of a recurring entry changes
Automatically balance but doesn’t mean the entries are correct
