Question

What is limitations of jouranal???

Answer 1

Journal is the book in which transactions are recorded in the chronological order (i.e. in the order or sequence they are entered)

It records both aspects of transaction i.e. Debit and Credit

Advantages

1. It provides the accounting data in chronological order

2. It reduces the possibility of error

3. Along with journal entry narration is written,explaining the entry

Disadvantages

Journal is not suitable for large volume of transactionsIt requires analytical and technical knowledge for correct accounting

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Answer 2

Here is your answer.......

Limitations of journal :―
1.When the number of transactions is Large,it is not possible to record all the transactions in journal?It will become bulky and voluminous.Hence the,usual practice is to have separate journals or books for different classes of transactions such as purchase book,sales book,etc.

2.Many transactions are repetitive in nature and if all transactions are recorded in journal it will debiting and creating the same accounts time and again.It will involve repetitive posting labour also.

3.To ascertain cash balance every day,cash transactions are usually recorded in a separate book called'Cash Book'. Thus,cash transactions need not be in journal.

4.Journal does not provide the required on prompt basis.