Mention the difference between double-entry system and single entry system or incomplete records.

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kavitaKumari · Answer 1 · 2021-07-08T08:20:45+0000

The following are the difference between the double-entry system and single entry system.

Single Entry system	Double Entry system
1. Dual aspects of transactions are not recorded.	1. Dual aspects of every transaction are recorded.
2. As trial balance is not prepared, arithmetical accuracy can't be checked	2. Trial balance is prepared to check the arithmetical accuracy.
3. Only an estimate of profit can be made	3. Actual net profit can be Calculated
4. Balance sheet can not be prepared to ascertain the financial position	4. Balance sheet can be prepared to ascertain the financial position
5. This system is suitable for sole trader who have a few transaction	5. This is suitable for all types of business all types of business