State the salient features of single-entry system.

The salient features of the single -entry system are:

  1. Incompleteness of accounting records is the most important feature of the single -entry system.There are varying degrees of incompleteness of accounting records.
  2. Under this system,nohard and fast rules are observed for recording bussiness transactions.For some transactions.For some transactionsie,for transactioninvolving personal accountsof debtors and cash account,genarally both the aspects are recorded.For most of the transactions,such as expenses paid incomes recieved,goods purchased on credit and goods sold on credit usually only one aspect is recored .For a few transaction such as depreaciation charged on fixed asset,stock destroyed by fire,etc,none of the aspects is recorded.
  3. Uder this system,all accounts are not maintained .Genarally ,only cash bookand personal accounts of deborts and creditors are maintained.Real accounts and normal accounts are maintained.
  4. The cash book,maintained under this system,usally,mixes up the business transaction as well as the private transaction of the proprietor .
  5. As a complete record of each and every transaction is not maintained underthis system given only partial information ,and not full information about the bussiness.Asthe full information about the bussiness is not given by this system,this system is an incomplete unscientific ,unsatisfactory and unreliable  systemof accounding.

It is usually  adopted  by small business concerns like sole traders and partnership firms whose voliume of business and financial resources do not warrant the elaborate and costly double-entry system.Big concern do not adopt this system ,and joint stock companies cannot adopt  this system because of legal restriction