Justify, whether books maintained by the single entry system is reliable as the books maintained by the double entry system.

Asked by Topperlearning User | 4th Jul, 2016, 08:16: AM

Expert Answer:

Double entry system of accounting records both aspects of a transaction. Hence it is able to provide accurate information as to profit, liabilities and assets. While single entry system of accounting does not record all transactions in certain cases. Sometimes it records both aspects but still only in some aspect. So, single entry system is less reliable than double entry system of book keeping.

Answered by  | 4th Jul, 2016, 10:16: AM