Question

Books maintained under double entry system are more reliable as compared to when maintained under single entry system. Comment.

Answer 1

Double entry system of accounting records both aspects of a transaction. Thus it provides accurate information as to profit, liabilities, etc. On the other hand, single entry system of accounting does not record transactions in some cases, while in certain others. it records both aspects and still in some only one aspect. Thus, double entry system is more reliable than single entry system.