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P2 C10 Accounts from Incomplete Records — Account STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceAccountP2 C10 Accounts from Incomplete Records3 Marks
Question
Describe the uses (advantages) of Single Entry System.
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Answer

Advantages of Single Entry System : They are as follow. $(i)$ Limited Object: This method is very useful for small traders like hawkers, smallretialers or small shopkeepers because the utility to prepare the accounts is limited. $(ii)$ Limited Books : Small traders keep the book as per their business requirement.Normally they prepare only personal accounts but they do not prepare real accountsand income and expenditure account. So, it requires limited books. $(iii)$ Less Expensive and Less Time : In this method all accounts are not prepared as perdouble accounting method. So accounts are prepared with less expense and lesstime. $(iv)$ Accounting change in accordance with time : In this system, traders according totheir requirement they maintain their accounts. Here, no similarity like many tradersonly prepare cash book in subsidary book. Where that traders as per required changescash book as purchase or sale is prepared.

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