Question

Differentiate the Single and Double Entry Book-Keeping in your own words. Furthermore, briefly explain the objectives of Double Entry Book-Keeping.

Answer 1

Answer:

See below

Explanation:

A single entry book keeping is when a cash book is being maintained to record income and expenses. In a single entry book keeping, only one entry is made per transaction like we have in check register.

Double entry book keeping is when an accounting entries have two sides, debit and credit leg. The right hand side is the debit while the left side is the credit.

Objectives of double entry book keeping

• To provide accurate recording of business transactions to management

• When there are problems in financial matters, book keeping assist in solving this problems through its systematic record of financial transactions .

• Book keeping also provide information to the management for making plans and decisions relating to finances.