Single Entry System V/s Double Entry System

Followings are some of differences between single entry system and double entry system of bookkeeping:

1.     The bookkeeping system in which only one aspect of a transaction is recorded, i.e. either debit or credit, is known as Single Entry System. Double Entry System is a system of keeping records, whereby both the aspects of a transaction are captured.

2.    Single Entry Transaction is simple and easy whereas Double Entry System is complex as well as it requires expertise in accounting for maintaining records.

3.    In single entry system, incomplete records are maintained while in double entry system complete recording of transactions is there. 4.    In single entry system comparison between two accounting periods is very difficult. Conversely, we can easily compare two accounting periods in the double entry system.

5.    Single Entry System maintains personal and cash accounts. On the other hand, personal, real and nominal accounts are kept in Double Entry System.

6.    The Single Entry system is best suited for small enterprises, but big organisations prefer Double Entry System.

7.     Frauds and misuse are easy to identify in double entry system which cannot be located in single entry system.