Double entry Book Keeping System

      Double entry system of book keeping has emerged in process of evolution various accounting techniques. It is the most perfect, scientific and complete system of recording business transaction.  

Conventional Accounting System      

         Conventional Accounting System is a traditional method of recording Accounting information. Indian system of accounting is the example of conventional accounting system.



Comparison between Conventional Accounting System and Double entry Book Keeping System



No


Conventional Accounting System

Double entry Book Keeping System


1)

Meaning:  This method records incomplete business transactions.


Meaning: This method is Scientific and records complete business transactions.


2)

Coverage: It is a method Covering less details of transactions.


Coverage: This system covers complete details of business transactions.


3)

Accuracy: Arithmetical accuracy is not guaranteed.

Accuracy: Arithmetical accuracy is assured.


4)

Nature: It is a traditional method of recording

Nature: It is modern method of recording business transactions.


5)

Number of Account Books:  in this method only two books are prepared. 1) Cash Book 2) Ledger.


Number of Account Books: in this method all subsidiary books / Journals and ledgers are prepared.

6)

Recording: All transactions are basically recorded in only one book i.e. Cash Book.

Recording: All transactions are recorded in Different Subsidiary Books/ Journal.




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