Features of Single Entry:

1. Suitable for sole traders and partnership firms: The single entry system is suitable only for sole traders and partnership firms.
Companies cannot keep books on single entry system because of legal provisions.

2. Only personal accounts and cash accounts are kept: In this system it is very common to keep only personal accounts and to
avoid real and nominal accounts. It also keeps one cash book which mixes up business as well as private transactions.

3. All transactions are not recorded: All business transactions are not recorded in the books of account. Some of them are recorded
in the books of accounts, certain transactions are noted in the diary and some of them are in the memories.

4. Lack of uniformity: This system lacks uniformity as it is a mere adjustment of double entry system, according to the convenience of the individual.

5. Collection of information from original documents: It is quite often seen that for information one has to depend on original
vouchers. For example to know total purchases and sales, onehas to depend on copies of invoices.

6. Profit only an estimate: Profit under this system is only an estimate.

7. True financial position can not be ascertained: True financial position can not be ascertained as Balance Sheet is not prepared due to the absence of nominal and real accounts.

8. Not accepted by Tax Authoritiess: Due to incompleteness, inaccuracy, and unsystematic nature, it is not accepted by tax authorities.