Which of the following is not disadvantage of double account system?
1
Since all Assets are recorded at cost and not the written-down value, the Balance Sheet does not exhibit a real position.
2
The capital account helps us to understand the source of capital in various forms and the application of the same in the form of various fixed assets.
3
It is not always possible to understand the accounting statements and forms by ordinary people.
4
Proper distinctions between revenue expenditure and capital expenditure are not possible under this system.