Single Entry Accounting System: Double Entry Accounting System Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

let's see what are the differences
between the single entry system and
double entry system let's go one by one
the first difference that can arise
between these two is with regard to
principle itself if you take a double
entry system that is going to be a debit
for every credit and vice versa but in
case of single entry system the debit
and credit are not going to tally okay
and you will continue with that that's
why we call it as incomplete method in
double entry the principle is for every
debate there should be a corresponding
and equivalent credit but that is not
going to happen in case of single entry
system the second difference arises with
regard to a recording of transactions
the second difference arises with regard
to recording of transactions if you take
double entry system in double entry
system debit and credit aspects of all
transactions will be recorded whereas in
single entry system you don't pay that
attention and when you not have debit
and credit of all transaction for some
transactions you will have only debit
for some transactions will have only
credit okay so in recording of
transaction also you got a difference
then what are the accounts that are
maintained in both the systems if you
take a double entry system we have all
the three that is we maintain personal
real and nominal okay in case of double
entry system whereas in case of single
entry system only the personal and in
real also not all only the cash is
maintained so only the personal and cash
accounts are maintained in case of the
accounts in single entry system then the
fourth difference arises in trial
balance okay in case of double entry
system you can ensure arithmetical
accuracy of these records by preparing
the trial balance whereas that trial
balance preparation is not possible in
case of
single entry system then the fifth
difference arises in determining the
profit or loss in determining the profit
or loss if you take double entry system
you can prepare a statement called
income statement or profit and loss
statement and balance sheet and you can
see what is the picture of the business
you can know whether you are making
profit or loss but if you take single
entry system a profit and loss account
and balance sheet cannot be conveniently
prepared because the accounting entries
or incomplete in nature the next
difference is with regard to the
suitability the next difference is with
regard to suitability if you take a
double entry it is suitable for all
kinds of business ok whereas single
entry is suitable only for a small
traders it is suitable only for small
traders then comes the differences with
regard to dependability if you take
double entry system this is the
scientific system of bookkeeping whereas
a single entry system is not a
scientific system first of all it is not
a system at all it is incomplete and
unscientific in nature then
acceptability if you talk about
acceptability double entry system is
accepted by legs regulatory authorities
accepted by tax authorities accepted for
bank loans but single entry is not
accepted by anyone and the final final
difference with regard to internal check
and control with regard to internal
check and control let me put it here
internal check and control is possible
in case of double entry system whereas
in single entry system of bookkeeping
the internal control or internal check
is not possible