Explain about pegboard system, Accounting Basics

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Q. Explain about pegboard system?

One more innovation in manual systems was the one write or pegboard system. Beside creating one document and aligning other records under it on a pegboard companies could record transactions more efficiently. These systems allow the writing of a check and the simultaneous recording of the check in the cash disbursements journal. Even though a few of these systems are still in use today computers make them obsolete.

During the 1950s companies as well used bookkeeping machines to supplement manual systems. These machines recorded recurring transactions such like sales on account. They posted transactions to the general ledger and subsidiary ledger accounts and calculate new balances. With the development of computers bookkeeping apparatus became obsolete. They were quite expensive as well as computers easily outperformed them. In the mid-1950s large companies start using mainframe computers.


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