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Difference between single entry sysystem and double entry system |
| Answer» \tBasisDouble entry\xa0SystemSingle entry systemRecording of Both aspectsThis system records both the aspects of a transaction.This system does not record both aspects of a transaction , for some transaction two aspects, for\xa0some other one aspect and yet for others no aspect at all are recorded.Type of AccountsUnder double entry system, all accounts i.e., personal, real and nominal are maintained. Balance Sheet is prepared to ascertain the financial position.Under single entry system, only personal accounts and a cash book are maintained. No Balance Sheet can be prepared to ascertain the financial position.Arithmetical AccuracyUnder this system, arithmetical accuracy of\xa0books of accounts can be checked by preparing a trial balance.Under this system, arithmetical accuracy of books\xa0of accounts cannot be checked, as a trial balance\xa0cannot be prepared due to incomplete system of accounting.AuthenticityThis system is considered authentic by the court.The court does not consider this system as authentic.UseThis system is used by almost all the businesses.This system is used by only tiny businesses and institutions.\t | |