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  1. Double Entry Versus Single Entry.

Double Entry deals with both Personal and Impersonal Accounts, whereas Single Entry deals with Personal Accounts only.

In Double Entry there are always one or more debits and one or more corresponding credits in each transaction ; and the sum of the debits is equal to the sum of the credits, so that the amount is entered twice, or double. In Single Entry there are not corresponding debits and credits in each transaction ; each entry concerns but a single account, and that a Personal Account, so that the amount is entered but once, or single. In Single Entry there can therefore be no Trial Balance to test the accuracy of the posting.

In a Double Entry Ledger there are Loss and Gain Accounts which give the details of the losses and gains. In a Single Entry Ledger there are no Loss and Gain Accounts, and therefore no details of the losses and gains. The only method of finding the Net Gain or the Net Loss in Single Entry, is by taking the difference between the Net Investment and the Net Capital at closing.

  1. Books Used in Single Entry.

The books generally used in Single Entry are the Journal, the Cash Book, the Bill Book and the Ledger ; the Cash Book and the Bill Book are used as auxiliary books, though indeed they could be used as principal books from which payments of cash or notes on account might be posted to the Ledger. Many bookkeepers use an Order Book or a Counter Check Book in connection with the Journal, or even instead of the Journal.

  1. Single Entry Journal Rule.

Make a person debtor when he receives on account, and creditor when he gives on account.

  1. Transactions Entered by Single Entry.

There are three general kinds of transactions : (1) all on account, (2) part payment with cash or note, and balance on account, and (3) payment of the whole amount with cash or note, and nothing on account.

For (1). Make an entry in the Journal, debiting the person when he receives value on a/c, and crediting him when he gives value on a/c. 87

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