Single entry system

Double entry system

1

Personal account and cash account
alone are maintained.

Personal account, real account and nominal
accounts are maintained properly.

2

It involves less clerical labour.

It involves more clerical labour.

3

Only one aspect of a transaction is
recorded.

Two aspect of a transaction are recorded.

4

There may be debit without a
corresponding credit and vice versa.

For every debit there is a corresponding
equal credit.

5

Trading account, Profit and loss
account and Balance sheet cannot be
prepared as it has incomplete record.

They can be prepared.

6

It is an imperfect way of bookkeeping.

It is a perfect and scientific system.

7

Approximate net profit can be
indirectly calculated.

Accurate net profit can be calculated
directly.

8

As the ledger does not contain all
accounts, trial balance cannot be
prepared.

To test the arithmetical accuracy a trial
balance can be prepared.

9

Tax authorities do not accept it as such

Tax authorities accept this method.

10

Internal check is not possible

It is possible in this system.

11

Balance sheet cannot prepare. So,
financial position is difficult to ascertain.

Reliable financial position can be found
through balance sheet.

12

The Accounting records are not
acceptable as evidence.

In case of disputes, accounting records can
be produced in courts of law

13

It is suitable for small businessmen

It is suitable for any type of businessmen.