Answer :

Features of double accounting system

a. Each transaction has two sides, one side is debited, other is credited and on each account, there are two sides, debit and credit

b. The two sides of transactions are recorded ion two opposite side of two separate accounts. For example, you buy stationary using cash, then in cash account, cash will be debited, and the stationary account will be credited, meanwhile, in the stationery account, the stationery account will be credited, and cash will be debited, each entry can be checked from two places.

Demerits of double entry system

i. No effect when account is left – if the person making an entry using a double accounting system, and if he or she has forgotten to enter entry, it cannot be verified as it will be missing in both accounts

ii. Difficult to find Compensatory error – compensatory error is like if you buy something of 500 Rs, but mentioned it as 5000 in both accounts, it won't affect trail balance and it will be difficult to identify.

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