Limitations of Journal Assignments Made Easy for You by Myhomeworkhelp.com
Journals have much utility in accounting and it is the first thing that Accountancy students need to learn before they can proceed onto the other, more complex topics. This is the very basic and a favorite topic for teachers to set questions on. While journals are of much help to any business organization, they also have some limitations.
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Limitations of Journal:
If you need a basic idea on the topic, here is a list of Limitations of Journal that has been set down for you by Limitations of Journal assignment Help service:
1. No compact information is available:
All the transactions are recorded in the journal one after the other on a daily basis. So it can be rather difficult to figure out information about a particular transaction unless the specifics of the transaction, including the date, are remembered.
2. Cash book serves as an alternative:
The cash transactions involved in everyday business are already recorded in the cashbook, so a second recording in the journal of the same is kind of unnecessary in practice.
3. Journals take a lot of time to be maintained:
The journal-to-ledger postings are an elaborate process and take a lot of time because every entry has to be posted in a separated ledger.
4. The journal can become too much to handle:
When a company is largely operative, several transactions take place in a single day and recording all of these transactions in one book will result in the journal becoming a huge thing, which will be difficult to maintain or carry around.
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