Single-entry bookkeeping is a simple and straightforward method of bookkeeping in which each transaction is recorded as a single-entry in a journal. This is a cash-based bookkeeping method that tracks incoming and outgoing cash in a journal.
Single-entry bookkeeping is an accounting system used to keep track of a business’s finances. There is one entry per transaction and most entries record either incoming or outgoing funds. Transactions are recorded in a “cash book”—a journal with columns that organize transactions details like date, description and whether it’s an expense or income.
Single entry is an old accounting system adopted by small firms. It includes three sets of accounts:
- Debtors Account
- Creditors Account
- Cash Book (including bank)
There is no trial balance (as there is no double entry) and therefore accuracy of data is not assured.
There is no Proper Statement of Financial Position but instead we call such statement as “Statement of Affairs”
It is also known as Statement of “Incomplete Records”