Question
Mention three characteristics of Single Entry System.
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Answer
Features of Single Entry System:
- Suitability: This system is suitable for small-size businesses where the number of transactions is less.
- No Uniformity: This system may differ from firm to firm as it is a mere adjustment of Double Entry System according to requirements and convenience.
- Maintenance of Personal Accounts: Usually under this system, only personal accounts are maintained and real and nominal accounts are avoided. Therefore sometimes, it is defined as a system where only personal accounts are kept.
- Maintenance of Cash Book: Generally, a Cash Book is maintained in this system which mixes up business as well as personal transactions.
- Dependence on Original Vouchers: Usually under this system, original vouchers are scrutinised for collection of information. For example, in case of credit sale, the owner may keep the invoice without recording it in accounting books and at the end of a particular period the total of the invoices gives credit sales of the business. Similarly, the amount of credit purchases may be determined on the basis of original invoices received from the suppliers.
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A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March, 2017. Other balances in his Ledger are as under:
Prepare his Balance Sheet as at 31st March, 2017.
Prepare his Balance Sheet as at 31st March, 2017.Find out the credit purchases from the following:
| ₹ | |
| Balance of creditors April 01, 2016 | 1,80,425 |
| Balance of creditors March 31, 2017 | 26,000 |
| Cash paid to creditors | 24,000 |
| Cheque issued to creditors | 37,200 |
| Cash purchases | 32,200 |
| Discount received from creditors | 1,99,000 |
| Discount allowed | 26,000 |
| Bills payable given to creditors | 2,09,050 |
| Return outwards | 8,97,000 |
| Bills payable dishonoured | 1,40,000 |
| Bills receivable endorsed to creditors | 4,500 |
| Bills receivable endorsed to creditors dishonoured | 1,800 |
| Return inwards | 3,700 |
Calculate Gross Profit and Cost of Goods Sold from the following information:Net Sales $₹\ 1,00,000$
Gross Profit $33\frac{1}{3}\%$ on Cost.
→Gross Profit $33\frac{1}{3}\%$ on Cost.
Prepare a ‘Total Creditors Account with imaginary figures.
Distinguish between Sales Book and Sales Account. Difference between Sales Book and Sales Account Basis Sales Book.
In the following Bank Reconciliation Statement. determine the missing amount:
On 20th March, 2019, Naresh sold goods to Kailash to the value of ₹ 1,250, taking a bill at 3 months for the amount. On maturity, the bill was dishonoured. Naresh paid ₹ 10 as noting charges. On 1st July, Kailash cleared his account by paying ₹ 1,260.
Make the entries in the books of both the parties to record the above transactions.
Make the entries in the books of both the parties to record the above transactions.
Calculate Gross Profit and Cost of Goods Sold from the following information:Net Sales $₹\ 1,00,000$
Gross Profit $33\frac{1}{3}\%$ on Cost.
→Gross Profit $33\frac{1}{3}\%$ on Cost.
Rectify the following errors assuming that there is no Suspense Account:
- Salary of ₹ 5,000 paid to Rahul was not posted to Salaries Account.
- Sales to Amrish of ₹ 1,430 posted to his account as ₹ 1,340.
- Sales to Vijay of ₹ 2,470 posted to his account as ₹ 2,740.
- Purchases from Pal of ₹ 1,430 posted to his account as ₹ 1,340.
Record the following transactions in Double Columns Cash Book and balance the book on 31st March, 2019:
|
2019
|
|
₹
|
||
|
March 1
|
Cash in Hand
|
12,750
|
||
|
|
Cash at Bank
|
72,400
|
||
|
March 4
|
Received from Asha cash ₹ 1,200 and a cheque for ₹ 3,200, allowed discount ₹ 400
|
|
||
|
March 7
|
Paid salary to staff by cheque
|
25,600
|
||
|
March 9
|
Withdrawn cash from bank for office use
|
21,900
|
||
|
March 12
|
Interest paid by bank on bank balance
|
1,200
|
||
|
March 16
|
Purchased furniture in cash
|
16,500
|
||
|
March 21
|
Paid Mohan & Co. by cheque, discount received ₹ 100
|
10,900
|
||
|
March 24
|
Proprietor withdrew from office cash for his personal use
|
11,600
|
||
|
March 29
|
Sold goods to Manoj for cash
|
14,800
|
||
|
March 31
|
Deposited office cash into bank
|
21,200
|
||