by It is a method of rapid posting in books maintained under Double Entry principle. Under this system, posting is done from slips and not from journals or cash books.
Slips are loose leaves of journals and these are supplied either by the customers or by the bank staff.
Reasons for adoption of slip system
- Slip System of accounting/ posting is adopted for the following reasons:
- It ensures smooth flow of accounting.
- It can distribute the work of posting among many persons.
- It helps in keeping the accounts of customer upto date.
- This system saves a lot of clerical labour as most of the slips are filled in by the customers and provide an objective evidence of the records.
Features of slip system of posting
- Slip system of posting is based on the Double Entry System. Double Entry System is a system in which each entry affects the two accounts with same amount, i.e. debit is equals to the credit.
- The transactions are entered into by providing the details on the slips.
- It contains the different slips i.e. withdrawal slip, pay-in-slip and cheque for different types of transactions.
- It records the transactions in ledger book of accounts.
- Slips serves as the evidence for the transactions.
Advantages of Slip System:
(i) it reduces the possibility of errors and frauds;
(ii) it saves a lot of time since it is prepared by the customers themselves;
(iii) it provides a good system of internal check etc.
Disadvantages of Slip System:
Chances of Loss of Slips: Slips are just like the loose leaves of the paper. It may be lost, distorted or misappropriated very easily. Thus, it is unjustified to maintain the records in form of the slips.
No Verification: As the posting is done directly to the ledger accounts and no entry is made in the subsidiary books. So verification of accounts is not possible.
Types
Withdrawal Slip
Withdrawal Slip is the slip used for drawing the amount from the bank account. It is a document of bank on which a person writes the date, account number and amount of money to withdraw from the bank. These slips contain the following particulars to be filled:
- Name of the Drawer having bank account
- Account Number
- Date
- Branch of the Bank
- Signature of the Drawer
PAY-IN-SLIP
This is also known as deposit Slip. It is a form supplied by a bank for a depositor to fill out and to deposit the money in the bank. Pay-in-slip is used to deposit the amount in the bank. These slips contains the following particulars to be filled:
- Name of the Depositor having bank account
- Contact Number
- Account Number
- PAN Number
- Date
- Branch of the Bank
- Denominations of the money deposited
- Signature of the Depositor
CHEQUES
Cheque is a negotiable instrument which can be transferred by mere hand delivery. It is a document issued by an individual to his or her bank, directing them to pay the person whose name is mentioned in the document the sum specified in it for such a document to be valid, it is important that the person issuing it has an account in the said bank. An issuer of the cheque is called Drawer, and the one to whom it is issued is the Drawee. Cheque is used to make safe and convenient payment. It is less risky and danger of loss is minimized.
