Book-Keeping and Accountancy · Ch 10 — Single Entry System
Distinction between Single Entry System and Double Entry System
3
Distinction between Single Entry System and Double Entry System
The MSBSHSE Std XI Book-Keeping and Accountancy syllabus builds the entire earlier part of the course on Double Entry Book-Keeping (Chapter 2 onward), which is exactly why Chapter 10 is framed as a contrast to it — Single Entry System is best understood as everything Double Entry deliberately is NOT. The key points of distinction, commonly asked as a direct "distinguish between" question in HSC first-year exams, are:
| Basis of Distinction | Double Entry System | Single Entry System |
|---|---|---|
| Scientific basis | A scientific, uniform method — every transaction is recorded on both its debit and credit aspects, following one fixed rule. | An unscientific, unsystematic method — no fixed rule is applied uniformly to every transaction. |
| Accounts maintained | All three classes of accounts — personal, real and nominal — are maintained in full. | Generally only personal accounts (debtors, creditors) and a cash book are maintained with regularity; real and nominal accounts are largely missing. |
| Dual aspect | Every transaction's dual aspect (debit and credit) is recorded consistently. | The dual aspect is recorded only inconsistently — many entries capture only one side. |
| Trial Balance | A Trial Balance can be extracted directly from the ledger to check arithmetical accuracy. | No Trial Balance can be prepared, since real and nominal accounts are incomplete. |
| Profit ascertainment | Profit is ascertained precisely, through a Trading and Profit and Loss Account built from actual revenue and expense heads. | Profit is only an estimate, ascertained indirectly by comparing net worth (capital) at two dates. |
| Financial position | A proper Balance Sheet shows the true, verified financial position. | A Statement of Affairs shows only an estimated financial position, since several figures rest on assumption or incomplete record. |
| Suitability | Suitable for every type of business, and legally compulsory for joint stock companies. | Suitable only for small sole proprietorships and partnership firms; a joint stock company cannot legally use it. |
Definition 1Double Entry System
The scientific, uniform method of book-keeping (built up across earlier MSBSHSE Std XI chapters) in which every transaction is recorded on both its debit and credit aspects across all three classes of accounts — personal, real and nominal — allowing a Trial …