Single Entry System
A single entry system is a system of bookkeeping that considers only one aspect of all financial transactions, which means that transactions affect only one account. Under this system, value of only one account will increase or decrease according to the nature of the transaction taken into consideration. The accounting details are maintained only by preparing a cash book and personal accounts of debtors and creditors, and real and nominal accounts are not recognized under this system of bookkeeping. The profit ascertained under the single entry system is pretty inaccurate, as only one aspect of all the transactions is taken into account. Preferably, small businesses and shopkeepers adopt this method of bookkeeping, as there are no set rules to maintain the accounts, hence is comparatively much easier than the double-entry system. Accounting records maintained under this system are also known as incomplete records.
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