Advantages And Disadvantages of Double Entry System of Accounting
Advantages / Merit of Double Entry System There are following Advantages / Benefits And Disadvantages / Drawbacks of using Double Entry System of Bookkeeping . These are explained below: 1. Double Entry of Accounting System ensures proper maintenance of Books of Accounts. Dual Aspects of Business Transactions are recorded and as a result every Debit Side must be equal to the monetary value of Credit Side. The system insures transparent, clear and reliable information to the Users of Financial Statements . 2. This system of Double Entry of Bookkeeping helps in the accuracy of Business Transactions by equalizing of both Debit And Credit Side in monetary value and hence avoid errors, mistakes and frauds upto a certain level. You may also be looki ng for " Advantages And Disadvantages of Single Entry System of Accounting " 3. Complete information of Accounting Records is available through Financial Statements And Repor...