Single entry system vs. Double entry system
Basis of
Comparison
Single entry system
Double entry system
Definition It is an oldest accounting system which record only one side of each transactions. It is scientific and systematic accounting concept that states every transactions has equal and opposite effect in the both side of account.
Nature It is fair and simple in nature. It is more scientific and complex in nature.
Principle of It is not based on a principle of It follows accounting principle of duality duality. duality.
Tax propose It is not suitable for tax purpose. It is easy to determine taxes.
Decision It does not provide relevant It provides relevant information to making information to make a decision. make a decision.
Error Difficult to identify possible frauds Easy to identify error and frauds.
detection and accounting error.
Suitability It is suitable form small firm. It is suitable for large business firm. Types of Only personal and real account is Real, nominal, and personal account is account considered. maintained.
Preference It is not preferred by stakeholders as It is preferred by stakeholders as it of it provides one side picture of a provides a complete financial picture of stakeholders business firm. a business firm.
Acceptance It is not accepted by everyone for It is universally accepted accounting recoding financial transactions. concept for recording financial transactions.