Double Entry System Is More Popular Because It Complete Scientific Method | Solution To True Or False

Is Double Entry System Better Than Single Entry System And Why?

Yes, it is “True” that Double Entry System is more popular as it completes scientific method i.e., it follows a complete Accounting Cycle Process or follows Steps Of Accounting Cycle. It provides both aspects of a Business Transaction i.e., For every Debit, there must be a credit with an equal amount but in the opposite side.

It provides more reliable information of accounting data as compared to Single Entry System because under Double Entry Of Bookkeeping, proper Books Of Accounts are maintained and updated supported by evidence documents. A proper accounting cycle is followed. Accounting transactions are journalized, posted through Journal and Ledger. A Trial Balance is prepared to show the list of total debits and credits. Financial Statements such as Income Statement, Balance Sheet, Cash Flow Statements and Statement of Retained Earnings are  prepared. So, large and medium size businesses adopt Double Entry System rather than Single Entry System where incomplete records of books of accounts are maintained and hence this system can’t complete scientific method.