Railway Accounts Department Examinations

Showing posts with label single entry. Show all posts
Showing posts with label single entry. Show all posts

Monday, May 20, 2019

Differences between Single Entry and Double Entry


Differences between
Item
Single Entry
Double Entry
1. Meaning
Accounting system in which only single entry requires for every financial transaction
Accounting system in which two entries requires for every financial transaction.
For every debit, there is equaling credit is posted
2. Nature
Simple
Complex
3. Preferable for
Small enterprises
Big enterprises
4. Preparation of Financial Statements ( such as P & L Account and Balance Sheet)
Difficult
Easy
5. Suitable for Tax purpose
No
Yes
6. Knowledge of Book keeping
Not required
Required
7. Existing from
Since time immemorial
Since 1494 *
8. Detection of errors
Difficult
Easy

* Double entry book keeping was developed by Luca Pacioli, an Italian mathematician.  He is referred as "Father of Accounting and Book Keeping". He described book keeping along with other accounting topics in 9th chapter (150 pages) in his book  "The Summa de arithmetica"
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