WHAT IS SINGLE ENTRY SYSTEM?

A single entry system records each accounting transaction with a

single entry to the accounting records , rather than the more
common double entry system. The single entry system is centered
on the results of a business that are reported in the income
statement.
 The core information tracked in a single entry system is cash
disbursements and cash receipts. Asset and liability records are
usually not tracked in a single entry system; these items must be
tracked separately.
 The primary form of record keeping in a single entry system is
the cash book, which is essentially an expanded form of a check
register, with columns in which to record the particular sources and
uses of cash, and room at the top and bottom of each page in which
to show beginning and ending balances.

 Single entry systems are strictly used for manual accounting

systems, since all computerized systems utilize the double entry
system instead.

 It is generally possible for a trained accountant to reconstruct a

double entry-based set of accounts from single entry accounting
records, though the time required may be substantial. By doing so,
you can then reconstruct the balance sheet and statement of cash
flows.
ADVANTAGES OF SINGLE ENTRY SYSTEM
 Easy to understand: A single entry system is very easy to
understand even a layman can understand. so, prepare the
accounts is very easy.

 Cost-effective: In single entry system we not require any

accountant and chartered accountant
for audit the account so the cost is very less cooperative
to double-entry book-keeping system

 Time-Saving: Under single entry system, we record only one

entry for every transaction thus, this lead to time-saving for the
business

 Good For Small Business: Small business can implement the

single entry system as it is cost-effective and easy to
understand

 Helps in Decisions Making: It provides the basic information

to the manager about the sales and profit so they can make
decisions accordingly.

DISADVANTAGES OF SINGLE ENTRY SYSTEM

 low accuracy: In this system, the accuracy of the account is
low as we record only one aspect of the transactions.

 Calculation Error: If there is any calculation error so we not

have cross-checking option as we have in the double-entry
system.

 Not Able to Prepare Financial statement: In Single system, we

can not prepare the financial statements Profit & Loss Account
and Balance Sheet.
 Manipulation of Account: under this system manipulation of
the account is very easy there is no cross-check option.

WHAT IS DOUBLE ENTRY SYSTEM?

Double entry is a bookkeeping and accounting method, which
states that every financial transaction has equal and opposite
effects in at least two different accounts. It is used to satisfy
the accounting equation:
Assets=Liabilities+EquityAssets=Liabilities+Equity

Key points to remember ÷

1. Double entry refers to an accounting concept

whereby assets = liabilities + owners' equity.

2. In the double-entry system, transactions are

recorded in terms of debits and credits.

3. Double-entry bookkeeping was developed in the

mercantile period of Europe to help rationalize
commercial transactions and make trade more
efficient.

4. The emergence of double entry has been linked

to the birth of capitalism.
ADVANTAGES OF DOUBLE ENTRY SYSTEM
 As both the personal and impersonal accounts are maintained
under the double entry system, both the effects of the transactions
are recorded.

 It assures arithmetical accuracy of the books of accounts, for

every debit, there is a corresponding and equal credit. This is
arrived by preparing a trial balance periodically or at the end of the
financial year.

 Errors can be checked and rectified easily.

 The outstanding balances of receivables and payables are

determined easily since the personal accounts are maintained.

DISADVANTAGES OF DOUBLE ENTRY

SYSTEM
1. Complexity: The double-entry system is a formalized accounting
system that requires specialized training to use correctly.
2. Cost: The complexity of the double-entry system means that it can be
more expensive. It usually requires more staff to operate
3. Time: The double-entry system is a time-consuming process. It
requires the entry of a lot of information and can be tedious to go
through each transaction.
4. Errors: The double-entry system is vulnerable to errors, such as
double-entry or recording errors. It can have a considerable impact on
the accuracy of the accounting records.
DIFFERENCE BETWEEN SINGLE
ENTRY SYSTEM AND DOUBLE ENTRY
SYSTEM
WHAT ARE ADJUSTMENT ENTRIES?
An adjusting journal entry is an entry in a
company's general ledger that occurs at the end of
an accounting period to record any unrecognized
income or expenses for the period. When a transaction
is started in one accounting period and ended in a later
period, an adjusting journal entry is required to properly
account for the transaction.
Adjusting journal entries can also refer to financial
reporting that corrects a mistake made previously in the
accounting period.
Adjusting journal entries are used to record transactions
that have occurred but have not yet been appropriately
recorded in accordance with the accrual method of
accounting.
The most common types of adjusting journal entries are
accruals, deferrals, and estimates.
It is used for accrual accounting purposes when one
accounting period transitions to the next.
Some examples of adjustment entries
are=