What is Single Entry System

Under Single Entry System or Single Entry Bookkeeping, there is no proper maintenance of Books of Accounts. Only one aspect of Business Transactions is recorded in the Books of Accounts of Business.

Which Type of Accounts Are maintained Under Single Entry System?

If Debit Side of Accounting Journal Entry is recorded, then you may not find Credit Side and hence incomplete accounting records are maintained. Sometimes, we find complete Accounting Journal Entry and Accounting record. Sometime incomplete records are found and sometimes complete information related to an account is missing. That is why we find only few books of accounts which are maintained like for all accounts General Journal is prepared, Cash maintained under Cash Book, Accounts Receivable maintained under Accounts Receivable T Account, Accounts Payable maintained under Accounts Payable T Account, etc but some information is missing or complete omission of Accounting information is found under this system. So, this system either records only debit side or Credit side or complete accounting Entry or sometimes lacks complete information of some accounting records. So, it is improper and incomplete Accounting system which is adopted in Small Business Firms or Small And Medium Enterprises.

Single Entry System is also called Accounts From Incomplete Records.

You Can Read Out, "What Is Double Entry System"

For Example, if Mr. A Sold goods for Cash Rs. 3000, then most of the time, he simply records Cash Account in the Cash Book and Sales Entry may not be found in Sales Ledger. So, we can not sure how much Cash Sales and Credit Sales he made during the Accounting Period, especially in case of omission of complete Accounting Journal Entry. So, the reliable information can not be obtained and also there are more possibilities of errors, mistakes and frauds.

Also Read Out, "Kinds / Types of Single Entry System" 

So, Single Entry System records either one aspect of Business Transaction or two aspects sometime or nothing to records any information or lacks proper maintenance of books of accounts.