estadisticas web Skip to content

Difference between single entry system and double entry system

Difference between single entry system and double entry system

A business entity can record its monetary transactions on both the single entry and dual entry systems. The former is less labor-intensive and requires less time, while the latter completely records transactions that require considerable effort and time.

The single game system accounting, economic but at the same time unscientific because it does not record all transactions, but only a few are tracked and some are partially recorded. On the other hand, the system of double registration of accounting is based on fundamental accounting principles and therefore records every aspect of the transaction.

Read the article that has been provided to you, to understand the difference between a single entry system and a double entry system.

Comparative chart

Basis for comparison Single access system Double entry system
Sense The accounting system where only one entry is required to record financial transactions the single registration system. The accounting system, in which each transaction concerns two accounts simultaneously, known as the Double Entry System.
Nature Simple Complex
Registration type incomplete To complete
Mistakes Difficult to identify Easy to locate
ledger Personal account and cash Personal, real and nominal account
Preferable for Small businesses Big business
Financial statement preparation Hard Easy
Suitable for tax purposes No s
Financial position It cannot be ascertained easily. It can be easily ascertained

Definition of the single entry system

The single entry registration system is the oldest method of managing financial records in which an entry is entered for each financial transaction. In this system, the corresponding opposite entry is not performed because transactions are recorded only once. Full transaction registration is not performed due to a single registration of each transaction. It mainly tracks transactions related to collections and disbursements.

This method of record keeping mainly used by a sole proprietorship and partnership company. This system does not require high knowledge and skills for accessing transactions. Magazines, ledgers and test reports are not prepared for this. However, the income statement ready to know the profit or loss of the business.

Due to some drawbacks such as one-sided entry, reconciliation of accounts not possible, the possibility of maximum fraud and errors. This is the reason why it does not coincide with the GAAP (General Accepted Accounting Principles). Furthermore, the accounting records maintained under this system are not suitable for tax purposes.

Definition of the double entry system

Double Entry System the scientific method for keeping financial records, developed by Luca Pacioli, in 1494. This system is based on the principle of duality, that is, each transaction has a double aspect. Each transaction affects two accounts simultaneously, where one account is debited while the other credited.

For example, suppose that Mr. A purchased goods from Rs. 1000 in cash from Mr. B, so here, on the one hand, he received goods and on the other hand the money given to Mr. B. So, you should have noticed that the goods are were acquired by giving up cash. Therefore, as the name indicates, this system records both aspects of a single transaction, that is, the increase in goods with the simultaneous decrease in liquidity.

Due to the dual effect, the system possesses completeness, accuracy and corresponds to generally accepted accounting principles (GAAP). A complete procedure l to record each transaction. The procedure starts with the source documents, followed by the journal, the ledger, the trial balance, then the financial statements are prepared.

There are fewer possibilities of fraud and misappropriation, because complete registration of transactions takes place in this system. Errors can be easily detected. In addition, the accounts can be reconciled, due to the twofold aspect. Tax laws also recommend the dual-entry system for recording transactions. Although a person should be professionally competent to maintain records under this system. Furthermore, due to the complexity of this system, it takes a long time.

Key differences between single entry system and double entry system

The following are the main differences between the single entry system and the double entry system of accounting:

  1. The accounting system in which only one aspect of a transaction, i.e. debt or credit, is known as a single entry system. Double Entry System, a record keeping system, where both aspects of a transaction are captured.
  2. The single entry transaction is simple and easy, while the double entry system is complex and requires experience in accounting for record keeping.
  3. In the single-entry system, incomplete records are kept while in the dual-entry system there is complete record of transactions.
  4. The comparison between single-entry systems between two accounting periods is very difficult. Conversely, we can easily compare two accounting periods in the double entry system.
  5. The single entry system maintains personal accounts and cash. On the other hand, personal, real and nominal accounts are kept in the Double Entry System.
  6. The single entry system is best suited for small businesses, but large organizations prefer the dual entry system.
  7. Fraud and misappropriation are easy to identify in the double entry system which cannot be located in the single entry system.


A person with little accounting knowledge can keep records as per individual registration system, but due to some shortcomings in this system, the double entry system has been evolved. Almost all countries in the world have adopted a double-entry system for maintaining accounting records.