INTRODUCTION:

A single-entry bookkeeping system or single-entry accounting system is a method of

bookkeeping relying on a one sided accounting entry to maintain financial information. Most
businesses maintain a record of all transactions based on the double-entry bookkeeping system.
However, many small, simple businesses maintain only a single-entry system that records the
"bare-essentials." In some cases only records of cash, accounts receivable, accounts
payable and taxes paid may be maintained.

This type of accounting system with additional information can typically be compiled into
an income statement and statement of affairs by a professional accountant.

ADVANTAGES:

Single-entry systems are used in the interest of simplicity. They are usually less expensive to
maintain than double-entry systems which require a significantly larger amount of expertise. If a
double-entry system is needed, then the services of a trained person are often required.

According to the U.S.A. Internal Revenue Service: "A single-entry system is based on the
income statement (profit or loss statement). It can be a simple and practical system if you are
starting a small business. The system records the flow of income and expenses through the use
of:

1. A daily summary of cash receipts

2. Monthly summaries of cash receipts and disbursements."

Additionally, in the U.S.A. Internal Revenue Manual, it is stated:

1. The single entry system of record keeping does not include equal debits and credits to the
balance sheet and income statement accounts. A single-entry accounting system is not
self-balancing. Mathematical errors in the account totals are thus common.
Reconciliation of the books and records to the return is an important audit step.
2. A single-entry system may consist only of transactions posted in a notebook, daybook, or
journal. However, it may include a complete set of journals and a ledger providing
accounts for all important items.
 3. A single-entry system for a small business might include a business checkbook, check
disbursements journal or register, daily/monthly summaries of cash receipts, a
depreciation schedule, employee wages records, and ledgers showing debtor and creditor
balances.

DISADVANTAGES:

 Data may not be available to management for effectively planning and controlling the
business.
 Lack of systematic and precise bookkeeping may lead to inefficient administration and
reduced control over the affairs of the business.
 Single-entry record administration of those assets may occur.
 Theft and other losses are less likely to be detected.

DIFFERENCE BETWEEN SINGLE ENTRY AND DOUBLE ENTRY:

The following are the points of difference between single entry system and double entry system:

  Double Entry System   Single Entry System

1. Both the aspects of a transaction are
recorded in it. So complete analysis of a
transaction is possible.
2. All the difference classes of accounts -
assts a/c, liability a/c, capital a/c, expense
a/c and revenue a/c - are maintained.
3. It is possible to verify the arithmetical
accuracy of books through trial balance.
1. For some transactions both the aspects are
recorded, while for some other transactions
only one aspect is considered. Again, some
transactions are not recorded at all. Thus,
complete analysis of a transaction is not
always possible.
2. Only cash accounts and personal accounts are
maintained.
3. As under this system both the aspects of all
transactions are not recorded, it is not
possible to prepare trial balance and thereby

4. In this system profit and loss account can
be prepared and the result of the business
can be determined thereby
5. The financial position of the business can 5. No account is maintained in respect of assets
be compared through balance sheet.
6. All the necessary information is available 6. As no detailed record is maintained in respect
from this system at any time.
7. It is easier to detect mistakes and
deflections under this system.
8. This system is based on scientific method 8. It does not follow any scientific rules.
9. Accounting is complex and costly under
this system
10. This system requires men with special
knowledge.
11. In the first stage each transaction is
recorded in a book named "journal" and
therefore it is posted in another book
named "ledger" in the second stage.
verify arithmetical accuracy of books of
account.
4. Under this system no account is maintained in
respect of income or expenditure. So it is not
possible to prepare profit and loss account.
However, profit and loss is determined
through a statement by comparing closing
capital with the opening capital, but is is not
so reliable.
and liabilities. So, balance sheet cannot be
prepared. However, a statement of affairs is
prepared on the lines of balance sheet. But it
is not regarded as a reliable document, since
the values of assets and liabilities are not
obtained from the regular books of accounts.
of all transactions full information is not
available from the books of account.
7. Mistakes and deflections cannot be detected
easily under this system.
9. Accounting is less complex and less costly
under this system.
10.  Men with common knowledge will do in this
case.
11. There is no rule here as such.
12. Since accounting under this system 12. Here secrecy can be maintained, since only a
requires a large number of employees, it few persons are sufficient for performing
may not be possible to maintain secrecy. accounting job.

DIFFERENCE BETWEEN DEPARTMENT AND BRANCH:

Departmental accounting and branch accounting give businesses different levels of control over
their finances. Departmental accounting is centralized and common in corporations and other
types of non-banking businesses. Branch accounting is more common in banking and other
industries where business is conducted in more than one location. Both essentially perform the
same types of accounting functions.

LOCATION:

One of the primary differences in branch accounting and departmental accounting stems from
how the business is structured. Businesses with their own accounting departments use
departmental accounting when the accounting process takes place in a central location but is
compartmentalized because the business consists of various departments. Each department might
have some level of autonomy and might undergo separate audits. Branch accounting is used in
industries such as banking where the business consists of branches that are generally independent
of one another, even though they are all owned by a parent company or organization.

COST:

One way branch accounting and departmental accounting differ is the amount of manpower
required to perform the jobs. With departmental accounting, most of the accounting procedures
can be performed in-house and might be able to use an individual accountant or a small team that
oversees the accounting for all departments. B.K. Banerjee, author of "Financial Accounting:
Concepts, Analyses, Methods and Uses," notes that maintaining separate books for each
department can be expensive. Instead, many companies opt for one group of accountants to
maintain all of the books. This cost consideration can also affect businesses using branch
accounting because they might need multiple accountants to maintain books in separate branch
locations.
RESPONSIBILITY:

The level of responsibility and oversight is greater with branch accounting than it is with
departmental accounting. Lack of centralization requires that each branch keep accurate records
of its own. However, this also requires the parent company or organization to keep a watchful
eye over the accountant and the branch organization. In departmental accounting, these actions
occur within the central organization. Although the need to keep watch over each department
remains, it can be easier to do so because it occurs within the parent company.

PROFITABILITY:

While branch and departmental accounting both help create a financial portrait of the company,
with branch accounting, the profitability of each branch can be equally important. Companies
can make adjustments as necessary for each branch of their organization. Adjustments can be
made within individual departments as well, but profitability is seen within the larger picture of
the parent organization's profits, rather than on an individual level.

REFERENCE:

http://smallbusiness.chron.com/difference-between-departmental-accounting-branch-accounting-
37051.html

http://www.accountingexplanation.com/
difference_between_double_entry_system_and_single_entry_system.htm