Question

Distinguish between Double entry and Single Entry system of accounting.

Answer 1

BASIS FOR COMPARISON	SINGLE ENTRY SYSTEM	DOUBLE ENTRY SYSTEM
Meaning	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 System.
Nature	Simple	Complex
Type of recording	Incomplete	Complete
Errors	Hard to identify	Easy to locate
Ledger	Personal and Cash Account	Personal, Real and Nominal Account
Preferable for	Small Enterprises	Big Enterprises
Suitable for tax purposes	No	Yes