Books and Accounts maintained

A single-entry system records each accounting transaction with a single entry to the accounting records, rather than the more common double entry system. The single-entry system is centered on the results of a business that are reported in the income statement. The core information tracked in a single-entry system is cash disbursements and cash receipts. Asset and liability records are usually not tracked in a single-entry system; these items must be tracked separately. The primary form of record keeping in a single-entry system is the cash book, which is essentially an expanded form of a check register, with columns in which to record the particular sources and uses of cash, and room at the top and bottom of each page in which to show beginning and ending balances. An example of a cash book is:

Examples of Double Entry

1. Purchase of machine by cash

2. Payment of utility bills

3. Interest received on bank deposit account

4. Receipt of bank loan principal

5. Issue of ordinary shares for cash