Give 2 limitations for journal entry.
Dear Student,
Limitations of Journal Entries are as follows:
a) Bulky & Voluminous: Since Journal entries involve recording each & every transaction on a daily basis as & when they occur, the journal book becomes very voluminous which makes it difficult to identify any particular transaction unless the date is known.
b) Lengthy Procedure: Recording any transaction through a journal entry means going through a long procedure of transferring all of them into ledger accounts , then to Trial balance & then only the statement of Profit & Loss A/c & balance sheet can be prepared. Whereas this is not so in case of maintaining subsidiary books which provides the detailed information in a very simple manner.
Regards,
Limitations of Journal Entries are as follows:
a) Bulky & Voluminous: Since Journal entries involve recording each & every transaction on a daily basis as & when they occur, the journal book becomes very voluminous which makes it difficult to identify any particular transaction unless the date is known.
b) Lengthy Procedure: Recording any transaction through a journal entry means going through a long procedure of transferring all of them into ledger accounts , then to Trial balance & then only the statement of Profit & Loss A/c & balance sheet can be prepared. Whereas this is not so in case of maintaining subsidiary books which provides the detailed information in a very simple manner.
Regards,