Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting.
This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid.

Double entry book keeping/Commercial accounting.
Double entry or commercial accounting system records both aspects of transaction i.e. receipt or
payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc.
This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of certain items over their useful life becomes important.

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