Which one do you think is the big catch, Single entry or Double entry system in accounting? Systems of accounting refer to the two systems of recording the financial transactions in the books of accounts. A formal record that documents a transaction is known as an accounting entry. There are two types of entry systems the Single entry and Double-entry systems in Accounting. A single-entry system of bookkeeping is where the transactions of the business affect only one account. Whereas the double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system has two equal and corresponding sides known as debit and credit. Single-entry bookkeeping has one entry per transaction, the debit is recorded in one account while the credit is recorded in another. In most cases, an accounting entry is made using the double-entry bookkeeping system, which eventually leads to the creation of a complete set of financial statements.

Aparika Sharma

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