Chapter 10 Single Entry System
Open with Full Screen in HD Quality
Project on BK & Accountancy
Single entry system in accountancy is a simplified method of
bookkeeping where each financial transaction is recorded only once. Unlike the
double entry system, which records both debit and credit aspects of
transactions, the single entry system only captures one side of the
transaction, typically the cash or bank side.
In single entry system, transactions are usually recorded in
a simple cash book, where cash receipts and cash payments are recorded
chronologically. Other financial transactions, such as credit purchases or
sales on credit, may not be recorded at all or may be recorded separately in an
ad hoc manner.
Single entry system is often used by small businesses or individuals who have relatively straightforward financial activities and do not require the complexity and rigor of double entry bookkeeping. However, it lacks the accuracy, completeness, and reliability provided by the double entry system, making it less suitable for larger businesses or those with more complex financial operations.