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SYSTEMS OF ACCOUNTING

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FOLLOWING ARE THE SYSTEM OF ACCOUNTING

Cash System of Accounting. Mercantile or Accrual System of Accounting. System of Accounting.

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Mixed

Cash System of Accounting

Under this system, only actual cash receipts and cash payments are recorded. No credit transaction is made for a payment or receipt until cash is actually received or paid. This system is usually adopted by the Government 10/1/12 Organizations and Financial

Mercantile or Accrual System of Accounting

Under this system, all business transactions are recorded in the books of accounts for a particular period inclusive of cash receipts and cash payments or any amount having become due for payment or receipt. 10/1/12

Mixed System of Accounting

This system is applicable only where there is a concern adopting combination of Cash System and Mercantile System. Under Mixed System of Accounting, some records 10/1/12 are made under cash system

Accounting records prepared under of the following system

Single Entry System

Under 10/1/12 this

Double Entry System

Under this

DIFFERENCES
SINGLE ENTRY SYSTEM

DOUBLE ENTRY SYSTEM

Incomplete system of recording financial transactions. is not based 10/1/12 on the concept

A complete system of recording and reporting financial transactions. is based on

It

It