Question
Give any three reasons for keeping records under Single Entry System.
✓
Answer
Reasons:
- Simple Method: Single Entry System is a simple method of recording business transactions.
- Less Expensive: It is less expensive when it is compared to Double Entry System of book keeping.
- Suitable for Small Businesses: It is mainly suited to small businesses with limited number of transactions and very few assets and liabilities.
- No Need of Expert Knowledge of Principles of Book Keeping: Under Single Entry System, accounting records can be easily maintained as their maintenance does not require expert knowledge of the principles of book keeping.
- Easy to Ascertain Profit or Loss: Ascertainment of profit or loss is much easier. To ascertain the profit or loss, the proprietor has to compare the financial condition of business at the close of the accounting period with that in the beginning.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
What is meant by provision for doubtful debts? How are the relevant accounts prepared and what journal entries are recorded in final accounts? How is the amount for provision for doubtful debts calculated?
Write a note on types of Assets with one example of each.
From the following particulars, prepare Balance Sheet as at $31^{st}$ March, $2019$:
→Mr. Akshat keeps his books on incomplete records following information is given below:
During the year he withdrew ₹ 45,000 and introduced ₹ 25,000 as further capital in the business compute the profit or loss of the business.
| April 01, 2016 | March 31, 2017 | |
| ₹ | ₹ | |
| Cash in hand | 1,000 | 1,500 |
| Cash at bank | 15,000 | 10,000 |
| Stock | 1,00,000 | 95,000 |
| Business premises | 75,000 | 1,35,000 |
| Furniture | 9,000 | 7,500 |
| Creditors | 66,000 | 87,000 |
| Bills payable | 44,000 | 58,000 |
When you proceed to reconcile the Bank Account starting with 'Debit' Cash Book balance. how is the following dealt with and why?
- Cheques issued but not presented for payment.
- Cheques deposited but not yet credited.
- Bank charges charged by the bank not recorded in the Cash Book.
- Interest allowed by the bank not recorded in the Cash Book.
Rectify the following errors:
- Sale of old furniture worth ₹ 3,000 treated as sales of goods.
- Sales Book added ₹ 5,000 short.
- Rent of proprietor’s residence, ₹ 6,500 debited to Rent Account.
- Goods worth ₹ 11,970 returned by Manav posted to his debit as ₹ 11,790.
From the following information, prepare Trading Account for the year ended $31^{\text {st }}$ March, $2019:$
Adjusted Purchases ₹ $6,60,000$; Sales ₹ $7,44,000$; Closing Stock ₹ $50,400$; Freight and Carriage Inwards ₹ $3,600$; Wages ₹ $6,000$; Freight and Cartage Outwards ₹ $2,000.$
→Adjusted Purchases ₹ $6,60,000$; Sales ₹ $7,44,000$; Closing Stock ₹ $50,400$; Freight and Carriage Inwards ₹ $3,600$; Wages ₹ $6,000$; Freight and Cartage Outwards ₹ $2,000.$
What types of Softwares are available for Accounting purpose?
What do you understand by relationship type? How is it different from relationship instance and relationship set?
What are Direct Expenses? Give two examples.