Write the limitations of double entry bookkeeping system.
1 Answer
There are limitations of double entry system:
- It is more expensive due to maintaining different kinds of records.
- It is impracticable for small type of organizations because large number of records or accounts are essential under it.
- It is a complex system because special knowledge or skill is required to maintain record under it.
- Lack of accuracy is also a limitation due to some errors not detected by trial balance.
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