Difference between the Single and the Double Entry System of Bookkeeping

Single entry system of bookkeeping as the name itself says does not follow the double entry system and this means the single entry system will not record or give effect to the two fold aspect of each and every transaction. Under the single entry bookkeeping. a bookkeeper uses a cash book and other books to record transactions. It is not really solid and a fool proof system because under this system there may be no record of some of the transactions and only partial record of some others. As such, single entry system of bookkeeping is not perfect and frauds and mistakes can easily happen, but hardly be detected.

Advantages of double entry bookkeeping over single entry system

  1. In the double entry bookkeeping system both the aspects of each transaction is recorded in the books. At the end of it all a trial balance can be drawn to prove the accuracy of transactions. But in single entry bookkeeping no such trial balance can be drawn.
  2. In double entry system the risk of fraud is less. But this si the complete opposite when it comes to single entry bookkeeping.
  3. In double entry system a trading and profit and loss account can be prepared very easily. But, under single entry system no trading and profit and loss account can be prepared.

Though in theory, bookkeeping may seem as an easy task, but in practice, it is a laborious task. KVS Accountants have extensive experience in maintaining the books of clients in a professional manner. For professional bookkeeping and accounting services, contact KVS Accountants on 020 7731 6131. We act as bookkeepers in Richmond, Chiswick, East Sheen, Kensington, Hammersmith, Earlsfield, Southfields, Battersea, Wandsworth and Wimbledon

 

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