Management Pros and Cons

What are the Advantages of Double Entry System

Here in this article we will discuss about the advantages of Double Entry System is modern and scientific system. It has numerous merits.

Advantages of Double Entry System

Complete Records of Each Transactions

It keeps the personal accounts relating to debtors and creditors as well as impersonal accounts relating to goods, profits, losses etc.. Thus, all the information regarding purchases, sales, expenses, income, profit, losses, debtors, creditors etc… are available in this system.

Checking of Arithmetical Accuracy

Under this book-keeping system, there is every debit amount for a credit amount, as a result, the total of all debits and all credits is equal. It can be tested by preparing trial balance from the ledger balances. If the debit and credit totals of trial balance disagree, it is known that there is error in recording.

Result of Business

Since it keeps a complete records of business transaction, it is possible to determine the net profit earned or net loss suffered by the business during a given period of time by preparing a complete profit and loss account and income and expenditure account during.

Knowledge of Financial Position

It helps to know about the capital, liabilities and assets of a firm with the help of balance sheet prepared immediately after trading and profit and loss accounts. Moreover, it also helps to ascertain how much is to be taken from how many customers or debtors and how much is to be paid to how many creditors.


About Author provides tutorials related to tech and programmings. We are also setting up a community for the users and students.

You may also like

First Generation Computer
Pros and Cons

Advantages and Disadvantages of the Fifth Generation of Computer

  • April 28, 2019
Fifth generation computers are based on artificial intelligence and biochips, and we can say that they are still in the
fourth generation computer
Pros and Cons

Advantages and Disadvantages of Fourth Generation of Computer

Very Large Scale Integrated (VLSI) circuits. VLSI circuits having about 5000 transistors and other circuit elements with their associated circuits