The salient features of the Single Entry System can be put as follows:
(i) Maintenance of personal accounts. Usually under this system personal accounts are maintained while real and nominal accounts are avoided. On account of his reason some accountants define it as a system where only personal accounts are maintained.
(ii) Maintenance of cash book. A Cash Book is maintained, which usually mixes up both the personal transactions and the business transactions.
(iii) Dependence on original vouchers. In order to collect the necessary information one has to depend on original vouchers. For example, the figure of credit purchases may not be readily available, it may have to be found out on the basis of original invoices received from the suppliers. Similarly, the total figure of sales at the end of a particular period may have to be found out on the basis of the invoices which have been issued by the business from lime to time.
(iv) No uniformity. The system may differ from finn to finn as per their individual requirements and conveniences.
(v) Suitability. The system is suitable in case of small, proprietary or partnership concerns. Limited companies cannot adopt this system on account of legal requirements.