Course Content
New Accounting Model (Exam-2009)
Books references: 1. Account Code (Volume III). 2. Chart of Accounts (Issued by CGA). 3. Manual Accounting Principles. 4. Accounting Policies and Procedures Manual.
Private: DAO Part-I Examination 2024 (Fresh Candidates) Past Papers
About Lesson

The differences between single-entry and double-entry accounting:

  1. Single-Entry Accounting:

    • Definition: Single-entry accounting records each financial transaction only once, either as a debit or credit in a single account.
    • Process:
      • Simple and straightforward.
      • Typically used by small businesses with low transaction volumes.
      • Commonly used for cash-based accounting.
    • Example:
      • Recording cash inflows and outflows directly in a cash register.
      • Tracking income and expenses without considering complex accounting principles.
  2. Double-Entry Accounting:

    • Definition: Double-entry accounting records each transaction in at least two accounts, as corresponding debits and credits.
    • Process:
      • More comprehensive and accurate.
      • Requires recording both the source and use of funds.
      • Ensures that total debits equal total credits.
    • Example:
      • When a business sells a product, it records both the revenue (credit) and the decrease in inventory (debit).
      • Tracks not only cash but also other assets, liabilities, and equity.

In summary:

  • Single-Entry Accounting: Simple, but lacks checks and balances.
  • Double-Entry Accounting: Comprehensive, accurate, and widely used for financial reporting.
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