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Single Entry vs Double Entry ⚔️

Double Entry: The Gold Standard. Used by every serious business. Single Entry: The Shortcut. Used by small shopkeepers.

Comparison Table 📊

Feature	Single Entry System	Double Entry System
Completeness	Incomplete records.	Complete records (Both aspects).
Accounts	Only Personal & Cash.	Personal, Real, and Nominal.
Trial Balance	Cannot be prepared.	Can be prepared to check accuracy.
Profit/Loss	Estimated (Statement of Affairs).	Accurate (P&L Account).
Financial Position	Estimated (Statement of Affairs).	Accurate (Balance Sheet).
Suitability	Small traders.	All types of organizations.
Reliability	Less reliable. Fraud is easy.	Highly reliable. Fraud is hard.

Single Entry"Cheap. Easy. Inaccurate."

↓

Double Entry"Costly. Complex. Accurate."

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Which system is accepted by Tax Authorities?

Single Entry

Double Entry

Both

None

💡 Final Wisdom: "Single Entry is like driving without a speedometer. You move forward, but you don't know exactly how fast or how far you've gone." 🚗

Next up: Defects & Limitations - Why is it bad? 📉