1.

Mention the difference between double-entry system and single entry system or incomplete records.

Answer»

The following are the difference between the double-entry system and single entry system.

Single Entry systemDouble Entry system
1. Dual aspects of transactions are not recorded.1. Dual aspects of every transaction are recorded.
2. As trial balance is not prepared, arithmetical accuracy can't be checked2. Trial balance is prepared to check the arithmetical accuracy.
3. Only an estimate of profit can be made3. Actual net profit can be Calculated
4. Balance sheet can not be prepared to ascertain the financial position4. Balance sheet can be prepared to ascertain the financial position
5. This system is suitable for sole trader who have a few transaction5. This is suitable for all types of business all types of business



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