We have already discussed about purpose and objectives of Routine Checking. In this article we will go through some merits and demerits of Routine Checking.
Purpose of Routine Checking
- Making totals and sub-totals of primary books of accounts, carrying them forward to the next page, and calculating the balances and their checking.
- Checking of the ledger postings derived from the primary books and journal, and to see whether they are properly done or not.
- To see the totals of debits and-credits of different accounts and their balances.
- To check whether balances of various accounts are properly taken to the Trial Balance, or not.
Meaning Of Internal Check
Internal check system is a part of the internal control system of the business. This is also called Internal Block. Each trader wants that he should be able to control the internal activities of his business, in such a manner that he can get maximum profits and the. chances of mistakes, fraud, etc., are could be minimum. The system of internal check is one such arrangement, in which the activities of employees are divided in such a manner that the work of one employee is independently checked by the other employee. Unless all employees of the organisation are become united, the chances of fraud etc., is not there.