Question

despite many languages double entry system also has some disadvantage in the light of this statement discuss the advantage of double entry system

Answer 1

1) It is more scientific method than single entry system
2) It minimise the errors

Answer 2

1) Complete record of Financial Statements.

2) Accurate information of amount due to and due by the business.

3) Arithmetical Accuracy is tested by preparing a trial balance by taking all the balances of the ledger

4) It is helpful in preventing frauds and errors.

5) It helps in ascertaining the profit/loss of a particular period by preparing Profit and Loss Account

6) Financial Position can be ascertained by preparing the Balance Sheet

7) Ready information to the Income Tax authorities.

8) Helful in filing claim for loss of stock as a result of fire to the Insurance Company.