Advantages and Disadvantages of Source Documents.

Dear Student
Source document is the evidence of a particular transaction which is to be entered in the books of accounts .
Advantages of Source Document :
  1. It helps in audit of the Transactions as it acts as Evidence .
  2. It hels to minimize the input of wrong information in the books of accounts .
  3. Accountability of Source document helps to reduce frauds in an organization .
Disadvantages of Source documents :
  1. Source document for each and every transactions is not possible , in such case of transactions their may be possibility of errors  or fraud in recording transactions .
  2. For large organisations , too much of transactions result in too much of source documents , in that case it is very difficult to maintain hard copy of source documents .

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