| Difference | Single Entry System | Double Entry System |
| 1. Meaning | A system of accounting that records one aspect or effect of each transaction either a debit or a credit, is called Single Entry System of book-keeping. | A system of accounting that records dual aspects or effects of every business transaction is called Double Entry System of book-keeping. |
| 2. Effect of transaction | Every transaction does not have two effects. | Every transaction has twc effects. |
| 3. Ledger accounts | Only personal accounts and cash accounts are opened in the ledger. | All types of accounts are maintained/ opened in the ledger. |
| 4. Trial balance | Trial balance cannot be prepared. | At the end of the year, trial balance can be prepared. |
| 5. Profit or Loss | True profit or loss cannot be known. Only an estimate of profit or loss can be arrived at. | By preparing profit and loss account correct profit or loss can be ascertained. |
| 6. Financial position | Balance sheet cannot be prepared for knowing the financial position of the business. | Balnace sheet can be prepared for knowing the financial position of the business. |
| 7. Adjustments | In this system, adjustments are not considered. | In this system, adjustments are considered. |
| 8. Suitability | It is suitable and convenient to small traders. | It is more suitable and convenient for all types of business organisations /traders. |
| 9. Manipulation | It is difficult to detect fraud or manipulation in this system. | In this system, frauds or manipulation can be detected and prevented. |
| 10. Information | As this system is incomplete, necessary information is not available. | This system being complete, necessary information is available. |
| 11. Authenticity | This system is not considered as authentic by the court, government and tax authority. | This system is accepted as authentic by the court, government and tax authority. |
| 12. Reliability | This system is not reliable because it is incomplete. So it is not valid for taking loan, insurance and for tax purposes by government authorities. | This system is reliable because it is complete. So it is valid for taking loan, insurance and for tax purposes by government authorities. |
| 13. Errors | In this system errors cannot be detected easily. | Errors can be detected and prevented easily. |
| 14. Decision making | Due to insufficient record of information, important decisions cannot be made. | Due to sufficient record of information, important decisions can be made. |
| 15. Rules | Under this system, while recording the business transactions in the books of accounts no specific set of rules are followed. | Under this system, while recording the business transactions in the books of accounts, rules of double entry system are strictly followed. |
| 16. Cost | This system is less costly. | This system is comparatively more costly and expensive. |
| 17. Control | As system is incomplete, it is not possible to keep control over activities of business. | As system is complete, it is possible to keep control over various activities of the business. |
