Q.Explain the limitations (disadvantages) of the Deshi Nama system.

The same simplicity that makes the Deshi Nama system convenient also gives it real limitations, which is why large modern businesses do not rely on it. These weaknesses are important to know honestly.

The Deshi Nama system, for all its convenience, has clear limitations:

1. No columnar bookkeeping. There is no proper system of multi-column books. Where a business deals in many different items, columnar books are very useful, and their absence makes the Deshi Nama records awkward for such businesses.

2. Weak audit trail. Supporting vouchers for dealings are not always systematically filed and cross-referenced into the ledger (Khatavahi). This makes a detailed, independent audit difficult, because an examiner cannot easily trace each entry back to its source document.

3. No uniform, standard rules. The system varies from trader to trader and community to community, so there is no single standard form that everyone follows.

4. Not suited to large modern business. Because it does not readily produce the standardised financial statements and analysis that management needs, it is not useful for decision-making in large business units. …

Confusing limitations with merits. The system's simplicity is a merit, but its lack of columnar books, weak audit trail, non-uniform rule …