What Are Kinds / Types of Single Entry System

We already Studied about Single Entry System of Bookkeeping in our previous article but here we are concerned about three (3) types / kinds of Single Entry System. These are explained below:

(i) Pure Single Entry System Definition And Meaning

In this single Entry System of Bookkeeping, Double Entry System of Bookkeeping is completely ignored. Neither Debit side is recorded nor Credit side of Business Transaction is recorded. Whole transaction is omitted or it is recorded at all initially in the books of accounts. So, we can say that this system is completely improper system of maintaining of books of accounts. In fact, this system totally ignores the dual aspect of transaction.

Under this system of Single Entry of Bookkeeping, only Personal Accounts of Accounts Receivable / Debtors and Accounts Payable / Creditors Accounts are maintained but Real and Nominal Accounts are not recorded in the books of accounts. For More details about Personal, Real and Nominal Accounts, you can study about, “Different Types / Kinds of Accounts Used In Accounting”.

Example: Mr. A sold goods worth Rs. 3000 To Mr. B For Cash, then this transaction is not recorded in the books of accounts as it is related to Real and Nominal Accounts. i.e. Cash is a Real Account while Sales is a Nominal Account.

(ii) Simple Entry System Definition And Meaning

This system is better than above system as this system better follows Double Entry System and leads to more proper keeping of books of accounts as it records not only Personal Accounts but also maintain records of Cash Transactions in the Cash Book.

Example: If we take into account of the above example, now it is recorded in the cash book as it is Cash Sales transaction, but still it is improper because there is still lack of dual aspect of business transaction at the end of accounting period as it is recorded only in Cash Book and the effects of Cash Sales is not transferred to Income Statement or Profit And Loss Account by passing Closing Journal Entries.

(iii) Quasi Single Entry System Definition And Meaning

This system is the best of all of the above systems as sometimes it records complete & dual aspects of business transactions, sometimes records one aspect of business transaction but sometimes it lacks complete record of a Journal Entry. So, it is the mixture of Pure And Simple Single Entry System. It keeps records of Personal Accounts, Real And Nominal Accounts and Subsidiary Books like Sales Day Book, Purchases Day Book, Accounts Receivable Subsidiary Book, Accounts Payable Subsidiary Book.

Example If Mr. A, as Sole Proprietor / Sole Owner of a Retailer Shop, sold goods on Credit To Mr. B of Rs. 3000, then it is record in Mr. B Subsidiary Ledger as a Accounts Receivable Subsidiary Ledger and in the Sales Day Book as a Credit Sales, if complete transaction is recorded by Mr. A.

Finally, we can say Quasi Single Entry System of Bookkeeping is much better than Pure And Simple Entry System as it is much better system of proper keeping of books of accounts as compared to these two types / kinds of Single Entry System.