Tells about cash, debtors and creditors cash balances only.
Records transactions related to business only.
Incomplete system of recording the transactions.
Can easily record fraud transactions.
Hard to find errors.
Persons accounts and cash accounts are included.
Not accepted by taxation department.
Takes lot of time in calculation profit/loss.
Suitable for small business.
Cost of implementation is not required.
Reconciliation of accounts is not possible.
Special knowledge is not required in maintaining books.
Trail balance can’t be prepared.
Not suitable for tax purpose
Difficult to prepare financial statement
Difficult to tell about financial position