Advantages of Double Entry System
- Accuracy of accounting work can be established.
- The profit earned or loss suffered during the period can be ascertained together with the details.
- It facilitates the preparation of Balance Sheet through which financial position can be ascertained.
- The system permits accounts to be kept in as much detail as necessary and, therefore affords significant information for the purposes of control etc.
- The result of one year may be compared with those of previous years and reasons for the change may be ascertained