state difference between double entry system and single entry system and accounting

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Solution

Dear Student,

The points of difference between single entry and double entry system of accounting are tabulated below.

Basis Single Entry System Double Entry System

Dual Aspect Dual effect of transaction is not shown. Dual effect of each transaction is shown.

Accounts Only personal accounts and cash book are opened. Personal, real, nominal all types of accounts are maintained.

Suitability Not suitable for giant organisations with large number of organisations. Suitable for all kinds of organisations whether big or small.

Regards

Basis	Single Entry System	Double Entry System
Dual Aspect	Dual effect of transaction is not shown.	Dual effect of each transaction is shown.
Accounts	Only personal accounts and cash book are opened.	Personal, real, nominal all types of accounts are maintained.
Suitability	Not suitable for giant organisations with large number of organisations.	Suitable for all kinds of organisations whether big or small.

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