Process of Bookkeeping (Single-Entry System)

The bookkeeping manner in particular archives the monetary consequences of transactions. An essential difference between a manual and a digital accounting machine is the former’s latency between the recording of an economic transaction and its posting in the applicable account. This delay, which is absent in digital accounting structures due to almost instantaneous posting to relevant accounts, is characteristic of manual systems, and gave upward thrust to the foremost books of accounts—cash book, buy books, income book, etc.—for without delay documenting a financial transaction.

In the occurrence of a transaction, in the everyday course of business, it produces a document every time. Receipts or invoices are often involved in sales and purchases system. The lodgment (deposit) inventory system also produces the deposit slips. Cash withdrawal is often performed through written checks in this process. Having journals which are often multi-columns, the important points are kept recorded, and all the sourced are kept saved in this way. This system of bookkeeping is called daybook system. For instance, income journal keeps the record saved related to deposit income. Moreover, journal of the cash repayments keeps the record saved related to money repayments. An account is often correspond through each column in a journal. If a transaction is added in the single-entry system one time, it wouldn’t be entered a second time, so that, each transaction would be a new transaction. This approach is often followed by software program related to personal finance. So that, this type of system is often utilized by those individuals who maintain/balance their accounts through a check-book.

Henceforth, after this single-entry system, the double-entry system starts it work. For example, for a monthly balance report which is often calculated every month in each financial system. The summary of the monthly report is totaled in each journal into each column. Furthermore, account book or ledger system work through the basic rules of the rules of double-entry system.

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