What is single entry and double entry system of recording?

Single entry system is an incomplete system of recording financial transactions. Double entry system is a complete system of recording and reporting financial transactions.

 

Accounting records which are not maintained according to double entry principles is known as Single Entry System.

 

In other words any system of book keeping which is not a complete double system of book keeping.

 

2.State two features of single entry system.  

It is incomplete and unscientific method.

Generally both aspects of debit and credit are not recorded.

Less costly

 

 Duality Single entry system is not based on the concept of duality. Double entry system is based on the concept of duality.

Accounts Single entry system maintains only personal accounts of debtors and creditors and cash book. Double entry system all personal, real and nominal accounts.

Trial Balance Single entry system can not prepare a trial balance and hence, arithmetical accuracy of books of accounts can not be checked. Double entry system prepares trial balance and hence, arithmetical accuracy of the books of accounts can be checked.

Profit Or Loss Single entry system can not ascertain the true amount of profit or loss of the business as it does not maintain nominal accounts. Double entry system ascertains true profit or loss of the business as it maintains all nominal accounts.

Financial Position Single entry system can not ascertain the true financial position of the business because it does not maintain real accounts except cash book. Double entry system ascertains financial position of the business as it maintains all personal and real accounts.

Suitability Single entry system is suitable to a small business where only limited number of transactions are performed. Double entry system is suitable for a large business.

Tax Purpose Single entry system is not acceptable for the purpose of assessment of tax. Double entry system is acceptable for the purpose of assessment of tax.

Key Difference is : Single-entry system requires inputting the entry only once in either the credit column or the debit column.
Double-entry system requires putting one entry twice, once in the credit column and once in the debit column of another account.

It is a sysytem of book keeping where transaction is recorded once instead of twice. In other words, the transaction is recorded either on debit or credit side only.

 

in single entry we can make individual books of debit and credit and we can relay on single book...
in double entry we can write debit and credit in one book and analyze work by seeing both side.

A single-entry bookkeeping system or single-entry accounting system is a method of bookkeeping relying on a one sided accounting entry to maintain financial information In the double-entry accounting system, each accounting entry records related pairs of financial transactions for asset, liability, income, expense, or capital accounts.
Recording of a debit amount to one or more accounts and an equal credit amount to one or more accounts results in total debits being equal to total credits for all accounts in the general ledger.

agree with all answers......................

In a single entry system, you record each transaction with just one entry.
For example, if you buy a computer for $1500, you write in your record book: Computer purchased: $1500.
On the other hand, in the double entry system, each transaction is recorded with two entries, one debit and one credit.
Thus, with the computer purchase transaction, you not only record the increase of the asset (computer) account with a debit of $1500, but you also record a decrease to the cash account with a credit of $1500.
(In this case, the asset account "Computers" is debited and the Cash account is credited.) The double entry system fraud and mistakes are more difficult to make and easier to catch while in the single entry system, fraud and mistakes are easier to make and more difficult to catch.
Furthermore, the double-entry system is a systemized process with the following parts: examining business transactions, journalizing transactions in the journal, posting to ledger accounts, preparing the trial balance, recording and posting adjusting entries, recording closing entries and preparing post-closing trial balance, making financial statements (possibly using an8-column worksheet).

in a single entry system you relay one side of your account but in double entry system you follow both side of your account

A single entry system is an incomplete system of recording financial transactions. A single-entry system is similar to a checkbook register and is characterized by the fact that there is only a single line entered in the journal for each transaction. In a simple checkbook, each transaction is recorded in one column of an account as either a positive or a negative amount in order to represent the receipt or disbursement of cash.

• Does not track asset and liability accounts such as inventory, accounts receivable and accounts payable. These must be tracked separately.

• Facilitates the calculation of income but not of financial position. There is no direct linkage between income and the balance sheet.

• Errors may go undetected and often are identified only through bank statement reconciliation.

Double entry system is a complete system of recording and reporting financial transactions. In a double entry system, two entries are made for each transaction - one entry as a debit in one account and the other entry as a credit in another account. The two entries keep the accounting equation in balance so that:

Assets    =    Liabilities   +   Owners' Equity

 

Double entry accounting has the following advantages over single-entry:

• Accurate calculation of profit and loss in complex organizations
• Inclusion of assets and liabilities in the bookkeeping accounts.
• Preparation of financial statements directly from the accounts
• Easier detection of errors and fraud

In Single entry system we only need to enter either credit or debit the corresponding entry will passes through system (Like Cash or Bank Payment or Receipt) on the other hand in double entry we enter both side to complete the transaction ( Like journal Vouchers)

The journal entry having only one debit and only one credit is known as single entry system.
The journal entry having more than one debit and one credit is known as double entry system.