Page 21 - Office Practice and Accounting 10
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indicating cards in it which are fixed in alphabetical order. Documents beginning
            with the alphabetical letter of that indicating card are placed behind it. The portion of
            each indication card bearing its alphabetical letter is visible at a glance.


            Advantages:
            •  It is very easy and simple to use.
            •  It requires very limited resources so it is economical.
            •  Documents are kept in loose form, due to which it is easy to take them out.
            •  Documents are safe in this system.

            Disadvantages:

            •  There is high chance of misplacement of documents.
            •  Not suitable for large and modern organizations.
            •  It is not scientific method of filing.

            Modern Filing
            Modern filing system is improvement over traditional filing system. With increased
            transactions of business, official documents also increase. For the changed situation
            only  the  new  methods  of  filing  are  best  suited.  The  new  method  of  filing  which
            preserves, arranges and ensures the quick location of documents, is known as modern
            filing.
            1.      Horizontal Filing

            Under this method, the documents are inserted in
            files or folders and folders are kept in drawers in
            horizontal positions one upon the other. Since the
            papers are kept in folders in the horizontal positions
            they  are  maintained  in  chronological  order.  The
            letters  relating  to  each  individual  are  placed  date
            wise,  with  the  latest  at  the  top.  The  letters  of  the
            various  correspondents  beginning  with  the  same
            letters are arranged phonetically.

            Advantages

            i.    Simple  Method  :  This  method  is  simple  to
                  understand and easy to operate.
            ii.   Flexible  Method  :  It  is  flexible  as  the  number  of  files  can  be  increased  or
                  decreased as per the requirement.
            iii.   Safe : This method provides safety to the documents because they are tied with
                  the lace or trapped with metal arch.



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