Single Entry system is a method of accounting in which every transaction affects only one account. That means one account’s value will increase or decrease based on the transaction amount. Small businesses maintain their accounts using single entry system due to ease of maintenance and minimum accounting requirements.
For example, Mark is a business owner and he purchases a printer for his business. So, he pays cash to the vendor and obtains the printer. So, he makes a single entry under the cash account and the cash account’s value decreases.
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