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4. Arithmetical accuracy can be tested by preparing a list of balances (Trial Balance)
from all ledgers concerned.
5. Trading account and profit and loss account is prepared with the help of trial
balance to know the exact profit or loss earned by a business during a particular
period.
6. This system provides full particulars of various assets and liabilities of the
business, so financial position can be known by preparing Balance Sheet.
7. It provides facility for internal and external comparison that helps the
organization for its growth.
8. Accounts maintained under this system is accepted by court of law and income
tax as authentic financial document.

9. It provides information and data to internal and external users to make right
decisions.

Differences between Single Entry and Double Entry System

1. Single entry system is unscientific and unsystematic style of account keeping.
It is more appropriate to call it an incomplete system of recording transactions.
Whereas the double entry system of book-keeping is a scientific, modern, complete
and the best system of recording the financial transactions of a business.

2. Under single entry system, transactions are recorded without using duality
principle but transactions are recorded following duality principle under double
entry system.
3. Only personal accounts and cash summaries are prepared in single entry system.
That means nominal accounts and real accounts (other than cash) are ignored. But
all accounts: personal, real and nominal are prepared under double entry system.

4. Single entry system is comparatively cheaper and more economical as single book
is enough for maintenance of records but double entry system is comparatively
expensive as it requires separate books, vouchers and person with specific
knowledge to maintain financial records.

5. Preparation of trial balance is not possible in single entry system but trial balance
can be prepared and arithmetical errors may be detected in double entry system.
6. Under single entry system balance sheet cannot show the actual financial position
of business. Balance sheet is prepared under double entry system as it shows
actual financial position of the business.

7. Single entry system is suitable to small scale business organizations whereas
double entry system is suitable for every kind of business organization.

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