The Slip System; Meaning, Main advantages and Disadvantages.
Meaning of Slip System of Posting In this system, posting is made from slips prepared inside the organisation itself or from slips filled in by its customers. So entries are not made in the books of original entry subsidiary books, but posting of entries is done from slips. In a banking company, the main ships are pay-in-slips, withdrawal slips and cheques and all these slips are filled in by clients of the bank. These slips serve the basis of entry in the ledgers and control accounts in the General Ledger are prepared on the basis of analysis of these slips. Main reasons for the adoption of the slip system of posting by the bank are the following: 1. The bank must have customer's account up-to-date for a customer may present a cheque any time during hours meant for the public. Slip system helps in keeping the accounts up-to-date. 2. The number of transactions in a bank is very large. The adoption of slip system can suitably distribute the work of posting among many persons....