Single Entry Accounting System

Single Entry Accounting System

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Single Entry Bookkeeping

A single entry bookkeeping is an accounting system that records only one entry for a transaction to the accounting records. The core information that single entry bookkeeping records is cash receipts and cash disbursements. Assets and liabilities needs to maintain separately in single entry bookkeeping.

It is a very simply accounting system and only used by small businesses. Small enterprises has less information to maintain thus single entry bookkeeping is best for them. But when business grows and has a lot of information to maintain then it is better to move to double entry bookkeeping system as it can handle large amount of data providing advance reporting facilities.


In a single entry bookkeeping system transactions are recorded in cashbook. For every transaction there should be one entry in cashbook. Cashbook has different columns to record the transactions in each rows.

  • Date: This is the date of the transactions,
  • Description: A short description about the transactions,
  • Income/Expenses: The amount of the transactions,
  • Balance: Summed up the amounts of all transactions.

The first entry of a single entry bookkeeping is the balance of the accounting period. Then all the transactions are recorded in each row. Last line of the cashbook is the closing balance of the accounting period. A typical cashbook of any business is below.

101-AprBeginning Balance$1000
205-AprPurchase shop supplies$200$800
310-AprSale: Mr. Kamal$100$900
415-AprSale: Mr. Kamrul$150$1050
520-AprSalary Paid$200$850
630-AprClosing Balance$850


  • Single entry bookkeeping system is very simple and easy to maintain.
  • No extra professional needed for single entry bookkeeping.
  • It is perfect accounting system for a start-up business.
  • Records income and expenses on a daily basis.
  • Income statement can easily be created because it records only income and expenses of the business.


  • Assets are not tracked on single entry accounting system so these can easily be stolen.
  • How much amount the company is liable to others can not be determined.
  • Errors can be made easily with this system and there is no good way to trace it.
  • Single entry bookkeeping system is bad for audit purpose.
  • Others financial statements like balance sheet can not be made from this system because of less information.

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