SYSTEMS OF ACCOUNTING

DOUBLE ENTRY SYSTEM:

We can define Double entry system as:"the system which recognises and records both aspects of a transactions.
The Double entry system has proved to be a scientific and complete system of accounting followed by every enterprise and organisation".

SINGLE ENTRY SYSTEM:
Single entry system of recording transaction in the book of accounts may be defined as a system, which is an incomplete Double entry system.

1. In this system, all transactions are not recorded on the Double entry basis.
2. As regards, some transactions both aspects of the transactions are recorded as regards others either one aspect is recorded or not recorded at all.
3. Only Personal Accounts and Cash book are maintained under this system.
4. The accounts maintained under this system are incomplete and unsystematic and therefore, not reliable.
5. It is also known as Accounts from incomplete records.