Differences between
|
Item
|
Single Entry
|
Double Entry
|
|
1. Meaning
|
Accounting system in which
only single entry requires for every financial transaction
|
Accounting system in which
two entries requires for every financial transaction.
For every debit, there is
equaling credit is posted
|
|
2. Nature
|
Simple
|
Complex
|
|
3. Preferable for
|
Small enterprises
|
Big enterprises
|
|
4. Preparation of
Financial Statements ( such as P & L Account and Balance Sheet)
|
Difficult
|
Easy
|
|
5. Suitable for Tax
purpose
|
No
|
Yes
|
|
6. Knowledge of
Book keeping
|
Not required
|
Required
|
|
7. Existing from
|
Since time immemorial
|
Since 1494 *
|
|
8. Detection of
errors
|
Difficult
|
Easy
|
* Double entry book keeping was developed by Luca
Pacioli, an Italian mathematician. He is
referred as "Father of Accounting and Book Keeping". He
described book keeping along with other accounting topics in 9th chapter (150
pages) in his book "The Summa
de arithmetica"
***