distinguish between double entry system and single entry system (in points) - Accountancy - Journal

Question

distinguish between double entry system and single entry system (in
points)

Neha Chopra · Accepted Answer

Dear
Student,

Basis of Difference
Single Entry
System
Double Entry
system

1 Definition

System of accounting wherein only single side of a financial
transaction is recorded in the books is termed as Single Entry
book-keeping system

System of accounting wherein both the impacted sides through a
transaction is recorded in the books is termed as Double entry
book-keeping

2 Recording

It is an incomplete system of recording

It is a complete system of recording

3 Dual concept

Not based on dual concept

Based on dual concept

4 Errors identification

Under this system , it is difficult to locate
errors

Errors can be identified easily under this
system

5 Prefered by

Small Enterprises, as transactions are not many

Big Enterprises to ensure effective recording &
reporting

6 Preparation of Trial Balance

Not Possible as all accounts are not maintained

Easily possible

7 Ascertaining Profit & Loss

Difficult in ascertaining
the profit /loss under this system

Comparatively easy

8 Simple/Complex

Its Simple but not reliable

Complex but reliable

Regards,

Basis of Difference	Single Entry System	Double Entry system
1. Definition	System of accounting wherein only single side of a financial transaction is recorded in the books is termed as Single Entry book-keeping system	System of accounting wherein both the impacted sides through a transaction is recorded in the books is termed as Double entry book-keeping.
2. Recording	It is an incomplete system of recording	It is a complete system of recording
3. Dual concept	Not based on dual concept	Based on dual concept
4.Errors identification	Under this system , it is difficult to locate errors	Errors can be identified easily under this system
5.Prefered by	Small Enterprises, as transactions are not many	Big Enterprises to ensure effective recording & reporting
6. Preparation of Trial Balance	Not Possible as all accounts are not maintained	Easily possible
7. Ascertaining Profit & Loss	Difficult in ascertaining the profit /loss under this system	Comparatively easy.
8. Simple/Complex	Its Simple but not reliable	Complex but reliable

distinguish between double entry system and single entry system.(in points)