Systems of Accounting
Single Entry System
It is an incomplete record of book-keeping. It is not restricted with accounting principles and policies. Under this system, only personal account and cash account are recorded. Single-entry does not mean recorded of only one aspects of entry for each transaction.
Single entry - for transactions like cash purchases
Double entry - for transactions like Cash paid to creditors
No entry - for transactions like depreciation.
If nominal and real accounts are missed, it does not show the True and fair view of financial statement.
Business people like Small traders, professionals follow this method.
###SUB-TOPCI###Double entry system###
For every Transactions it includes two aspects. One is receiving aspects and another is giving aspects. Both these aspects are recorded in a double -entry system of book-keeping. As it is restricted with accounting concepts and conventions it can view Reliable financial position. The basic principles under this system is for every debit there must be a corresponding credit.