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. |
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Quiz Time! 🎯
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💡 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? 📉