Economics · Banking and Financial Accounting
In the modern computerized accounting environment of Indian banks, the 'Slip System' of posting is still fundamentally relevant. When a customer deposits a large sum of cash along with a pay-in-slip, which of the following statements accurately describes the procedural advantage or characteristic of the Slip System?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Under the Slip System, the pay-in-slip serves only as a receipt for the customer and cannot be used as a primary accounting document for updating the bank's General Ledger.
- 2The slip system is only used for non-cash transactions like clearing house entries, while cash transactions must follow the traditional Journal-entry method.
- 3It allows for simultaneous posting into the ledger accounts directly from the original vouchers (slips), thereby reducing the time lag and the possibility of transcription errors.✓
- 4It requires the head cashier to manually enter every transaction into a bound primary day-book before any subsidiary ledgers are updated to ensure zero errors.
Correct answer
It allows for simultaneous posting into the ledger accounts directly from the original vouchers (slips), thereby reducing the time lag and the possibility of transcription errors.
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