7 Difference Between Single Entry and Double Entry

Single entry and double entry are the parts of the bookkeeping. In any kind of firm credit and the debit entries are recorded. It is very important to keep the record. Single entry is a type of bookkeeping in which all the entries are recorded only single times. In this mostly cash transaction is recorded. While the double entry is a system in which all the monetary transactions are recorded double time as credit and debit.

Single entry and double entry are very important for bookkeeping. In Single entry only, few transactions are recorded so in this some are tracked. It’s very important to understand the single entry and double entry. In this article we can discuss single entry and double entry in detail. We will also discuss the difference between the single entry and double entry. And other related aspects and terms related with single entry and double entry.

Single Entry vs Double Entry

Sr. No.	Single Entry	Double Entry
1	Only one entry is recorded for a transaction.	Two entries are recorded for a single financial transaction.
2	Very simple.	Little completed.
3	Maintenance doesn’t needs any skills.	Needs skilled people to maintain.
4	Records are incomplete.	Records are accurate and complete.
5	Comparison is very simple	Comparison is very difficult
6	Cash transactions are maintained	All types of transactions are recorded
7	Frauds are not identified	Frauds and errors are easily detected

Single entry

This is the old method to record the entries of the financial transactions. In this only single entry is recorded of any financial transactions. No other or corresponding entry is recorded. This record remains incomplete due to the single entries of the transactions. In a single entry only, cash transactions are recorded. In this case only some or cash transaction are recorded and other left remains untreated.

Single entry is used to record the data and transactions of the small firms or partnership firms. Single entry systems don’t need any specific skill to maintain this. A non-skilled person can easily maintain the single entries of the transaction. Income statement is prepared for the single-entry system to know the profit and loss in the business.

Single Entry systems have many drawbacks like one sided entry, danger of fraud, very difficult to find errors, reconciliation of the account is not possible. No trial balance and ledgers are prepared for the single-entry system. The records which are entered under this are not applicable for tax.

Double entry

Double entry is based on the principle of duality. This is the scientific method of maintaining records of the financial transactions. Every transaction affects two accounts which are credit and debit. In this system two entries are maintained for single transections like credit side and debit sides. With the two sides entries is terms as complete entry system. There is a suitable system to record the transactions entries in the double entry system. Trial balance and ledges are prepared for the double entry system.

Very less chance of fraud and in this system because full-fledged recording of financial transactions are done. Errors in this system are identified very easily. Reconciliation of the accounts is also very easy due to double side entries. The entries of this system are applicable for the tax.to record the double entry system a skilled person is required. Due to double entries this system is more time consuming.

Main differencee between single entry and double entry.

1. In the single-entry system only one entry is recorded for a transaction. In the double entry system two entries are recorded for a single financial transaction.
2. Single entry is very simple. Double entry is Little completed.
3. Single entry maintenance doesn’t need any skills. Double entry system needs skilled people to maintain.
4. In the single-entry system records are incomplete. In double entry system records are accurate and complete.
5. Comparison is very simple in the double entry system. Comparison is very difficult in a single-entry system.
6. Mostly cash transactions are maintained in a single-entry system. All types of transactions are recorded in the double entry system.
7. For small firms and businesses single entry is suitable. Big business and organizations required a double entry system.
8. Frauds are not identified in the single-entry system. Frauds and errors are easily detected in the double entry system.

Conclusion

Single entry and double entry systems are the parts of the bookkeeping of financial transactions. Single entry is used for the small firms. Single entry is used by the unskilled and less educated persons. Double entry system is a proper system of data recording. In this double entry are done for single entries. Big firms and large-scale businesses use the double entry system.

This is all about the difference between single entry and double entry systems. We hope this article will help you to clear your doubts. For any doubts please feel free to comment on us. For more interesting topics like this please go through our website.