Disadvantages of Double Entry System

If you have read other articles before reading this article from Google search engine, then you will find that many writers have written that double entry system is difficult, time consuming, possibility of error in this system. I think these are not disadvantages of double entry because every education is difficult, if you start practical without learning properly and completely. After this if you do errors by making journal entry.
It is not fault of by Luca Pacioli’s Great double entry system. Some learner also complaints that it is time consuming but I want to ask everything’s knowledge need time and energy after this you can become perfect in accounting . Double entry system is so simple, scientific and easy to understand. In other words there is no disadvantage of double entry system. I have written following three points against double entry system. By writing this, I am not criticizing great accounting system of world but following points is only disadvantage from particular businessman or student.

The following are disadvantages of the double entry System:

1. Not Suitable for Small businessman
In, Double entry system businessman has to need to keep many books which is not suitable for small businessman. A small businessman can make simple lists of his assets, liabilities, bank balance and debtors and creditors on note book under single entry system.

2. Costly
Double entry system can be activating by manual or computerized method but both are costly. So, this system has become costly after increasing the cost of purchasing new accounting software .

3. No accuracy before making of trial balance

Under double entry system, you can not check accuracy of journal before making of trial balance, after Making trial balance, if you find that both side of trial balance are equal, and then we can say that day book is mathematically correct.

Before writing these points , I have written that these are only for particular student or businessman , it means that if small businessman will become medium , then it will not disadvantage for him , if the value of books are very high like books of joint stock company , then this system automatically is become cheap .






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Accounting Education: Disadvantages of Double Entry System
Disadvantages of Double Entry System
Accounting Education
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