A single-entry system is an incomplete system of recording financial transactions. It fails to acknowledge two aspects of financial transactions. It also has no fixed rules for recording financial transactions. The following are the notable disadvantages of single entry system:

• Unscientific and unsystematic
• Incomplete system
• Lack of arithmetical accuracy
• Doesnt reflect true profit or loss
• Doesnt reflect the true financial position
• Frauds and errors
• Unacceptable for tax purposes

Double entry system is a scientific and authentic system for the recording of financial transaction which regonizes the dual aspect of every financial transaction.Following are the advantages of using double entry system:

• Keep a complete record of each financial transition
• Reflects the true profit /loss of an organization
• Presents financial position
• Provides arithmetic accuracy
• Reliability
• Facilitates comparisons
• Reduces errors and other irregularities