Explain the advantages of Double Entry Bookkeeping system

Double entry system is the most modern concept of accounting transactions, that is important for all types organizations and offices where transactions are performed. Advantages of double entry system are as follows:

1. Complete record of business transaction: Double entry system provides complete information about business transactions because it has facility to record transactions of receipts and payments in the same book-receipts on the debit side and payments on the credit side.
2. Checking on the arithmetical accuracy: According to double entry system, there will be equal debit and credit in each transaction. Trial  balance can easily be prepared to find out different types of errors.
3. Discloses the financial position of the business: In double entry system, the business organization prepare income statement and balance sheet. By preparing the statement the organization knows the operating results and financial position of business.