InvestorQ : what usually inadvertently single entry system...
madhur Gupta made post

what usually inadvertently single entry system...

Archita Jajjoo answered.
3 months ago
A single-entry system is a method of book-keeping where a company’s transactions are recorded as a single entry in a log. This process is generally preferred by small businesses, as it is simple to use and does not require any professional training. In general parlance, this method is known as an incomplete method for accounting since we rely only on one entry for maintaining the entire record of transactions. Under this system, we only record transactions that have taken place.

Let me clarify this with an example:

Suppose you incur an expense by paying salary and wages of Rs. 8000, in cash. Under this system, we will record the date of transaction, amount of transaction, payment made to the party, etc., and no other corresponding entry is needed under any other account.

If we have posted the same entry double-entry system, we would have debited (P&L) one account and credited (salary payable) another account. So, where the nature of transactions is irregular and is not voluminous, a single-entry system comes in handy and is simple to use.