Coupon Accepted Successfully!


What is the difference between Double Entry system and Single Entry System

The difference between Double Entry system and Single Entry System?



Double Entry System

Single Entry System

1.Both Aspects

Under this system, both aspects of a transaction

Both aspects of transactions are not recorded.

2. Accounts

All the accounts are maintained

Only Personal accounts and cash book are maintained

3. Trial Balance

Trial Balance is prepared and thus arithmetical accuracy of the books of accounts is verified

Trial Balance cannot be prepared due to incomplete system of accounting.

4. Profit or Loss

Net Profit or Loss can be ascertained by preparing Profit and Loss Account

This is not prepared

5. Financial Position

Correct Financial position of the business can be ascertained by preparing Balance Sheet

Balance is not prepared. Only statement of affairs is prepared.

6. Adjustments

Adjustments are made at the time of preparing final accounts

There is no provision to make adjustments primarily because of incompleteness of accounts

7. Use

This system is used almost by all business

This system is used by only tiny business and institutions

8. Authenticity

This system is considered authentic by the Court

The Court does not consider this system as authentic.

Test Your Skills Now!
Take a Quiz now
Reviewer Name