The advantages and disadvantage of double entry may be summed up as under
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advantages of Double Entry System :
1. It brings into record both the aspects every transaction the personal well as the impersonal.
2. It provides the most reliable information from day to day as to the amounts owing to and by the trader.
3. It facilitates reference to the details of any accounts if the information is needed regarding any set of transactions.
4. As a result of there bringing debits and credits of equal value, the theoretical the accuracy of the books can be proved by means of a trial balance.
5. It affords an easy comparison of the purchases sales and the opening and closing stocks at any one period with similar items of the previous period and thus enables the trader to see whether his business has been progressing.
6. By the preparation of a trading account the trader can find out how for the anticipated; gross profit'has been related.
7. It prevents fraud by rendering any alteration in the accounts more difficult facilities discovery of irregularities If any exist.
8. It helps towards the ready ascertainment of the trader's financial position by the preparation of a balance sheet
9. By the raising of nominal accounts for the several heads of expenditure and the various sources of income, a profit and loss A/c can be prepared at the end of each trading period.
Disadvantages of Double Entry System :
1. This system is more expensive because it increased the expense of the business. The person who as appointed for this works, take more salary.
2. The main demerit of this system is that it is difficult to apply the rules of debit and credit.
3. This system has some difficulty in drawing a proper distinction between capital and revenue expenditure.
4. There is a possibility of overlooking the amount of provision in care of, the assets while are so much in use.
5. In this system chances of errors are more possible.
6. Time and labor are more taken in this system.
