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Now it becomes clear that single entry is traditional, incomplete, unscientific process
of recording financial transactions which keeps the record only of personal and cash
accounts without following the rule of dual aspects of any transactions.

Features of single entry system
Features of single entry system are listed as below:
i. It is incomplete record because it ignores the nominal and real account except
cash.
ii. It is not guided by certain rule of recording of financial transaction.
iii. Trial balance can't be prepared from this system.
iv. Since it is not guided by rule, it lacks uniformity in recording of financial
transaction.
v. Though it gives details of income and expenditure, yet actual profit or loss
cannot be ascertained.
Advantages of single entry system

i. Single entry system is simple method to use and understand.
ii. It is suitable for small scale business.
iii. It is an economical method because person without specific knowledge of
account can maintain it.
iv. Profit and loss of business can be easily ascertained.
v. It is time saving method because there is no use of various types of books of
accounts.
vi. In this system, secrecy can be maintained.

Disadvantages
i. It is unscientific, unsystematic and incomplete system of book-keeping.
ii. Tax authority does not accept this system.
iii. There is no clear-cut record of purchases, sales and sales return.
iv. In absence of real account, balance sheet cannot be prepared. So, true financial
position of the organization cannot be shown.
v. True profit and loss of business cannot be determined in absence of nominal
account.
vi. Since proper records are not kept, control on assets is very poor.
vii. It records only one aspect of each transaction. So, trial balance cannot be
prepared and arithmetical accuracy of accounts cannot be checked.

Double Entry System

It is the method of accounting based on what is known as double entry principle. It
refers to that system of book-keeping where each transaction is recorded in both of
its aspects that is – receiving of the benefit of the transactions and giving away of the

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