The main characteristics or features of single entry bookkeeping system can be highlighted as follows:
1. Lacks Fixed Rules And Principles
Single entry system is not maintained on the basis of fixed rules and principles. So, it lacks accounting principles and rules.
2. Incomplete Accounting System
Single entry system of bookkeeping ignores dual aspects of business transactions. So, it is incomplete system of accounting.
3. Lacks Arithmetical Accuracy
Single entry system does not help to prepared trial balance. So, arithmetical accuracy is not possible.
4. No Final Accounts
Final accounts (trading account and profit and loss account) and balance sheet cannot be prepared with the help of single entry bookkeeping.
5. No True Profit Or Loss
Actual profit or loss of the business cannot be known because profit and loss is not prepared in this system of accounting.
6. No Disclosure Of Financial Position
Balance sheet cannot be prepared on the basis of single entry system. So, financial position of the business cannot be ascertained.
7. Suitable For Small Business Firms
It is suitable for small business firms having small volume of business transactions. Especially sole proprietorship and partnership firms prefer single entry system.
8. Economical System
Single entry system is the most economical and time saving method of recording financial transactions of the firm.
