Question - What are the disadvantages of a double-entry system?
Answer -
The disadvantages of the double-entry system are:
- If there are any compensatory errors, it is difficult to find out by this system
- This system needs more clerical labor.
- It is difficult to find errors if the errors are in the transactions recorded in the books.
- The double-entry system is not preferable to disclose all the information of a transaction, which is not properly recorded in the journal.