Differentiate between single and double entry bookkeeping system
1 Answer
The following are the differences between single and double entry bookkeeping system:
| S.N. | Single entry bookkeeping system | Double Entry bookkeeping system |
| 1. | 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 bookkeeping System. |
| 2. | Single entry system is imperfect and unscientific. | Double Entry system is more scientific and perfect accounting system. |
| 3. | It is easy to adopt. | It is complex to adopt. |
| 4. | It is difficult to conduct audit. | It is very easy to conduct audit. |
| 5. | It is Preferable for small enterprises. | It is Preferable for big enterprises. |
| 6. | It is difficult to locate errors and frauds. | It is easy to locate errors and frauds. |
| 7. | It is not suitable for tax purposes. | It is suitable for tax purposes. |
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