Earlier article explains what are self-balancing ledgers. Below distinguish the self-balancing and sectional balancing system used in bookkeeping:-
| (a) Under self-balancing system, adjustment accounts are prepared in each ledger but in sectional balancing system control accounts are prepared only in General Ledger(b) Under self-balancing system, separate trial balance in each ledger is prepared while in sectional balancing only one trial balance in general ledger is prepared
(c) Under self-balancing system, in each ledger, double entry is completed whereas in sectional balancing system, double entry is completed only in the General Ledger. Personal accounts in debtors and creditors ledgers are maintained on single entry basis only. |