Limitations or Drawbacks of Book-Keeping :
Book-Keeping suffers from certain limitations or Drawbacks. They are
1. In book-keeping only monetary transactions (i.e. transactions which can be measured in terms of money) are recorded, and non-monetary transactions are not recorded. That means book-keeping records do not contain information on all the activities of a business.
2. Book-Keeping records do not give exact information. They give only approximate information. This is because, in book-keeping, sometimes estimates are used, and the estimates depend on personal judgement.
3. Final accounts, prepared and presented under book-keeping, do not provide timely information to management for taking corrective action. This is because the final accounts are prepared only at the end of the accounting year.
Book-Keeping suffers from certain limitations or Drawbacks. They are
1. In book-keeping only monetary transactions (i.e. transactions which can be measured in terms of money) are recorded, and non-monetary transactions are not recorded. That means book-keeping records do not contain information on all the activities of a business.
2. Book-Keeping records do not give exact information. They give only approximate information. This is because, in book-keeping, sometimes estimates are used, and the estimates depend on personal judgement.
3. Final accounts, prepared and presented under book-keeping, do not provide timely information to management for taking corrective action. This is because the final accounts are prepared only at the end of the accounting year.
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