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 This system of accounting recognises and records both the aspects of the

transaction.

Single entry system

 Under this system, both aspects are not recorded for all the transactions.

 Either only one aspect is recorded or both the aspects are not recorded for
all the transactions.

Users/parties of Accounting

There are number of users interested in knowing about the financial soundness
and the profitability of the business.

Users Classification Information the user want

1. Owner Return on their investment, financial health of their company/business.

To evaluate the performance to take various decisions.
2. Management

Internal

Profitability to claim higher wages and bonus, whether their dues
3. Employees
(PF, ESI, etc.) deposited regularly.

1. Investors and potential investors To know about Safety, growth of their investments and future of the business.

External 2. Creditors Assessing the financial capability, ability of the business to pay its debts.

3. Lenders Repaying capacity, credit worthiness.