Professional Documents
Culture Documents
A single entry system records each accounting transaction with a single entry to the accounting
records, rather than the more common double entry system . The single entry system is centered
on the results of a business that are reported in the income statement . The core information
tracked in a single entry system is cash disbursements and cash receipts. Asset and liability
records are usually not tracked in a single entry system; these items must be tracked separately.
The primary form of record keeping in a single entry system is the cash book, which is
essentially an expanded form of a check register , with columns in which to record the particular
sources and uses of cash, and room at the top and bottom of each page in which to show
beginning and ending balances. An example of a cash book is as follows:
Nbr Date Description Revenue Expense Inventory Payroll
The main advantage of a single entry system is its absolute simplicity. It requires a minimal
number of entries, and a low knowledge of accounting standards. This makes it easy for a non-
accountant to use. In addition, it can be used to derive the profits generated by a business in
short order.
Assets. Assets are not tracked, so it is easier for them to be lost or stolen.
Errors. It is much easier to make clerical errors in a single entry system, as opposed to
the double entry system, where the debit and credit totals for separate entries to different
accounts must match.
Liabilities. Liabilities are not tracked, so you need a separate system for determining
when they are due for payment, and in what amounts.
Reporting. There is much less information available upon which to construct the
financial position of a business, so management may not be fully aware of the performance of
the firm.
Single entry systems are strictly used for manual accounting systems, since all computerized
systems utilize the double entry system instead.