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Answer» The following are the difference between the double-entry system and single entry system. | Single Entry system | Double 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 checked | 2. Trial balance is prepared to check the arithmetical accuracy. | | 3. Only an estimate of profit can be made | 3. Actual net profit can be Calculated | | 4. Balance sheet can not be prepared to ascertain the financial position | 4. Balance sheet can be prepared to ascertain the financial position | | 5. This system is suitable for sole trader who have a few transaction | 5. This is suitable for all types of business all types of business |
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