Limitation of journal
Limitation of journal
When
the number of transactions is large, it is practically impossible to record all
the transactions through one journal because of the following reasons.
i. The system of recording all the
transactions in a journal required
(a) the writing down of the name of the account involved as many times as the
transaction occur; and (b) an individual posting of each account debited and
credited and hence involves the repetitive journalizing and posting labour.
ii. Such system does not provide the
information on prompt basis.
iii. Such a system does not
facilitate the installation of an internal check system since, the journal can
be handled by only one person.
iv. The journal becomes bulky and
luminous.
Advantage of Journal
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