The system of double entry is more scientific and helps to attain the objects of book-keeping mentioned earlier. The advantages of double entry system can be stated as follows:

(i)    It provides a check upon the arithmetical accuracy of the clerical work. Since every debit has a corresponding credit, the total debits at any time must equal the totals credits in terms of rupee amounts.

(ii)    From the personal accounts, the amounts due to and due by each person, with whom the business deals, can at any time be ascertained.

(iii)    The information supplied by the books is not limited to personal accounts only; the impersonal accounts furnish additional information in respect of property and assets of business. In this manner, the full information concerning the business is easily obtained.

(iv)    The balance of nominal accounts can be collected together in Trading and Profit and Loss Accounts which disclose the result of the operations i.e., the gross profit (or loss) and net profit (or loss) for any given period.

(v)    By means of a Balance Sheet in which balances of accounts of accounts representing capital, assets and liabilities are set out, the financial position of the business, at any given moment, can be ascertained.

(vi)    The double entry system with its system of counter-checks reduces the risk and facilities the detections of errors and frauds.

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