Question

Write any ten differences between single and double entry system of book Keeping?​

Answer 1

The single entry system records only one aspect of a transaction, while the double entry system records both debit and credit aspects. The single entry system is used by small businesses, while the double entry system is used by medium to large-sized businesses. The double entry system provides accurate and reliable financial information.

Step-by-step explanation:

Single Entry System:

1. In single entry system, only one aspect of a transaction is recorded, either the debit or the credit.
2. It does not follow the double entry principle of recording two aspects of every transaction.
3. It does not provide a complete financial picture of the business.
4. It is generally used by small businesses to track cash inflows and outflows.
5. It is simple and easy to understand.
6. It does not provide accurate information regarding the financial position of the business.

Double Entry System:

1. In double entry system, both debit and credit aspects of a transaction are recorded.
2. It follows the double entry principle, which ensures accuracy and completeness of financial records.
3. It provides a comprehensive and accurate financial picture of the business.
4. It is used by medium to large-sized businesses to track and analyze financial transactions.
5. It requires a good understanding of accounting principles and concepts.
6. It provides reliable information regarding the financial position of the business.