Distinguish between double entry system and single entry system

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Distinguish between double entry system and single entry system.

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Distinguish between Double Entry and Single Entry System:

Sr. no. Basis Double Entry System Single Entry System
1 Aspects of Transactions It considers both aspects of a particular transaction. It does not necessarily considers both the aspects of a transaction. It may consider one or may not consider any of the aspects of a transaction.
2 Type of Accounts It maintains all 2 types of accounts namely, real, nominal and personal accounts. It maintains details and records of personal accounts only along with Cash book to record all cash transactions.
3 Trial balance It requires preparation of Trial Balance which identifies arithmetic accuracy of the records maintained. It is an incomplete system of accounting which and therefore, it does not provide complete details to prepare a Trial Balance.
4 Profit and Loss It facilitates ascertainment of profit or loss with the help of profit and loss account. It does not maintain complete details of the transactions and therefore, it is difficult to prepare a particular statement which will determine profit or loss.
5 Financial Position It facilitates preparation of balance sheet which shows the financial position of the entity. It is difficult to ascertain the financial position of the entity as balance sheet is not prepared.
6 Adjustments It takes into consideration all the adjustments at the tiime of preparing the financial statements of the entity. It is an incomplete system of accounting and hence, there is no provision to make adjustments.
7 Usefulness It is a system which is majorly used by most of the businesses. It is a system which is followed by small businesses and organisations.
8 Realiability It is considered as a reliable system of accounting as it is prepared based on prescribed acocunting concepts and principles. It is not a reliable system of accoutning since, the records maintained are incomplete and are not in alignment with the prescribed accounting concepts and principles.