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Limitations of Journal

  • When the number of transactions is large, it is not possible to record all the transactions in Journal. It will become bulky and voluminous. Hence, the usual practice is to have separate journals or books for different classes of transactions such as purchase book, Sales book, etc.
  • Many transactions are repetitive in nature and if all transactions are recorded in one journal it will involve debiting and crediting the same accounts time and again. It will involve repetitive posting labour also.
  • In order to ascertain cash balance every day, cash transactions are usually recorded in a separate book called “Cash Book”. Thus cash transactions need not be recorded in journal.
  • Journal does not provide the required information on prompt basis.

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