"Despite many advantages, double entry system also has some disadvantages".In the light of this statement discuss the disadvantages of the double entry system.

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Solution

Despite many advantages, double entry system has some disadvantages which are as follows

(i) Double entry system is complex and hard to understand.

(ii) It involves time,labour and money, so it is not possible for small business to keep accounts under this system.

(iii) It requires expert knowledge to keep accounts under this system.

(iv) As the system is complex, there is a greater possibility of committing errors and mistakes.

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