A business entity can record its monetary transactions either on Single Entry System or Double Entry System of Bookkeeping. The bookkeeping system in which only one aspect of a transaction is recorded, i.e. either debit or credit, is known as Single Entry System. Double Entry System is a system of keeping records, whereby both the aspects of a transaction are captured. Single-entry bookkeeping is probably only going to work for you if your business is very small and simple, with a low volume of activity. If you want to keep track of asset and liability accounts, you want to use double-entry bookkeeping instead of single-entry. Double entry system of bookkeeping is based on fundamental principles of accounting and so it records each and every aspect of the transaction. The engaging presentation will give better understanding on the topic.

Saranya R Kurup

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