Advantages of Double Entry System

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Advantages of Double Entry System:- 

    The double Entry System is the scientific and satisfactory system of accounting the advantages are

1) In provides a complete record of all business transactions as it records both the aspect of every Transactions.

2) It provides not only complete, but also reliable record of all transactions of a concern.

3) As both the aspect of every transaction is recorded, it is possible to prepare trial balance and check the arithmetical accuracy of books 📚 of Accounts.

4) As systematic record of all transactions is kept, possibilities misappropriation and fraud are reduced to the minimum.

5) As nominal Accounts are maintained under this system, it is possible to prepare a profit and loss Account and ascertain true profit or loss for a particular period.

6) As complete information about assets, liabilities and capital is available, it is possible to prepare a Balance Sheet and ascertain the tru financial position of the business on any particular date.


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