Livestock Economics, Marketing and Business Management

MEANING,SINGLE ENTRY AND DOUBLE ENTRY SYSTEMS OF BOOK KEEPING

Meaning

• Book keeping is an art of recording pecuniary or business transactions in a regular and systematic manner.
• This recording of transactions may be done by the following two systems

Single Entry System

• An incomplete double entry can be termed as a single entry system.
• It is a system of book keeping in which only records of cash and personal accounts are maintained, it is always incomplete double entry, varying with circumstances.
•  This system has been developed by some business houses, who keep only essential records.
• Since all records are not kept, the system is not reliable and can be used only by small business firms.

Double Entry System

• This system is believed to have originated with the Venetian merchants of fifteenth century and it is the only system of recording two – fold aspect of transaction.
• This system recognises that every transaction has a two – fold effect.
• If someone receives something then either some other person must have given it, or the first mentioned person must have lost something, or some service etc. must have been rendered by him