QS Study

Single Entry System is an incomplete, incorrect, unscientific and haphazard method of book keeping. The name of the system itself shows that the double aspects of business transactions are not recorded. This method records each accounting transaction with a single entry to the accounting records, rather than the enormously more widespread double entry system. This system makes use of Double Entry System partly. It maintains only personal and cash accounts. Real and nominal accounts are not preserves. It is an organism, adopted by certain business houses which, for their convenience and more realistic move toward, reject the strict rules of the double entry system and preserve only the bare necessary records. In other words, it is a defective double entry system manipulated to meet the needs of little trading concerns.

According to Kohler “Single Entry System is a system of bookkeeping in which as a rule, only records of cash and personal accounts are maintained. It is always incomplete double entry varying with circumstances”.

Thus, single entry actually refers to incomplete double entry system or the defective double entry system. It is not based on dual phase concept. Hence it is incomplete, incorrect, and unscientific.