Some businessmen prefer to keep their books under single entry system due to the following reasons.
1. The system is suitable to small traders which have mainly cash transactions and do not have many assets and liabilities to be recorded in details.
2. The system is economical since lesser number of books are maintained.
3. Lack of knowledge about the double-entry system.
4. Ignorance of businessmen as to the statutory requirements of keeping proper books of accounts.
5. Intentional omission to take advantage of taxation.
