Accounting Quiz - Assignment Example

Today, accounting software is undergoing a revolution from the desktop to the web and it is just tricky to explain why the double-entry system still prevails. While there are a lot advantages with the system as will be discussed below, there are some disadvantages that have been brought forward by accountants who believe that it is about time people embraced change and adopted a system that is more accurate and reliable. This paper will be discussing the triple-entry bookkeeping system as an alternative to the current double-bookkeeping system used and why the fore will be of more use to accounts.

Also, the paper will mention a few flaws with the proposed system, the triple-entry bookkeeping. To begin with, it is good to give a brief history on the current bookkeeping system and why it is supported by quite a good number of accountants. Double bookkeeping dates back to Venice. As suggested by its name, it involves entering a transaction twice into the ‘books’ of any enterprise. One of the entries is a debit while the other is supposed to be a credit. Below are the main advantages of using the system; First, the system provides a very unique and standard means of dealing with both opening and closing balance at the end of every financial year.

Also, the system provides an arithmetic check on an accountant’s bookkeeping. This is given the fact that both sides of the entries must balance out. It follows the idea that if that does not happen, then there is something very wrong happening. The other advantage is that through the use of a Sales and Purchase ledgers, it is easy to track who owes the business and also who the business owes. Gives a clear view of the position the business is at any given time. Nonetheless, the single-entry bookkeeping system does this too, and with much ease.

If done properly, the double-entry bookkeeping system can greatly be used to reduce accounting errors. All the above advantages translate to having a