Double entry system:-
It means complete accounting system. In double entry system, two sides of every transaction are recorded, one is debit side and other is credit side.
For example when goods are sold for Rs.1,500, then there are two aspects of this transaction, one we received cash and the second we delivered the goods. Therefore, the dual aspect of receiving the cash and delivering the goods is recorded in the books kept under double entry system as debit to cash and credit to goods.
Single entry system: -
Whereas in single entry system, it doesn’t necessarily happen as transactions may not be recorded at all or only one side of transaction is recorded. It results in incompletion of record commonly known as single entry system (only receipt and payment of cash is recorded and no separate record is maintained as to from whom the cash was received or to whom it is paid).
Hence example given in double entry system only receipt of cash of Rs.1,500 is recorded in the books but nothing shall be recorded regarding the goods delivered, thus giving rise to incompletion of records.