Question

Define Single entry System. Explain its advantages


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Answer 1

Answer:

Definition -

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.

Advantages -

Single entry system is simple to understand and easy to maintain as it has no fixed set of principles to follow while recording financial transactions. Further, it does not require large number of books to record the limited number of financial transactions