Single Entry Book keeping system
A single-entry bookkeeping system is a method of bookkeeping relying on a one sided accounting entry to maintain financial information.
Advantages:
- The single entry system of record keeping does not include equal debits and credits to the balance sheet and income statement accounts. A single-entry accounting system is not self-balancing. Mathematical errors in the account totals are thus common. Reconciliation of the books and records to the return is an important audit step.
- A single-entry system may consist only of transactions posted in a notebook, daybook, or journal. However, it may include a complete set of journals and a ledger providing accounts for all important items.
- A single-entry system for a small and ledgers showing debtor and creditor balances.
Disadvantages:
- Data may not be available to management for effectively planning and controlling the business.
- Lack of systematic and precise bookkeeping may lead to inefficient administration and reduced control over the affairs of the business.
- Single-entry record administration of those assets may occur.
- Theft and other losses are less likely to be detected.
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