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Differentiate between Double entry and Single entr...
1.
Differentiate between Double entry and Single entry system (Incomplete Records)
Answer»
BASIS FOR COMPARISON
SINGLE ENTRY SYSTEM
DOUBLE ENTRY SYSTEM
Meaning
The system of accounting in which only one sided entry is required to record financial transactions is Single Entry System.
The accounting system, in which every transaction affects two accounts simultaneously, is known as the Double Entry System.
Nature
Simple
Complex
Type of recording
Incomplete
Complete
Errors
Hard to identify
Easy to locate
Ledger
Personal and Cash Account
Personal, Real and Nominal Account
Preferable for
Small Enterprises
Big Enterprises
Suitable for tax purposes
No
Yes
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