The limitation of accounting are:
1. It is not exact as it is based on different estimates made by different people.
2. It ignores the price level changes and records all the items at historical value.
3. It records only monetary transactions thus ignoring the important non monetary transactions.
4. It may make manipulations in the Balance Sheet.
5. It omits qualitative information such as efficiency and capability of management, quality of products etc.
6. It is based on rigid concepts and conventions.
7. It may be influenced by personal judgement.
8. It requires knowledge of English language.
9. It needs specific training, knowledge and skill to maintain the books of accounts.
10.The layman cannot understand accounting system.
