Special Features of Single Entry System

On the basis of foregoing description of the incomplete records or single entry system, it is possible to enumerate its special features as:

(i)    It is an inaccurate, unscientific and systematic method of recording business transactions.

(ii)    There is generally no record of real and personal accounts and in most of the cases a record is kept for cash transactions and personal accounts.

(iii)    Cash book mixes up business and personal transactions of the owners.

(iv)    There is no uniformity is maintaining the records and the system may differ from firm to firm depending on the requirements and convenience of each firm.

(v)    Profit under this system is only an estimate and therefore true and correct profits cannot be determined. The same is the case with the financial position in the absence of a proper balance sheet.

(vi)    This system is generally found in sole trading concerns or even in partnership firms to some extent but never in the case of limited liability companies on account of legal requirements.

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