Question
State three points of difference between Single Entry and Double Entry System. Difference between Double Entry System and Single Entry System?
✓
Answer
Difference between Double Entry System and Single Entry System:
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S.No.
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Basis
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Double Entry System
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Single Entry System
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1.
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Aspect of a Transaction
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Under this system, both aspect of a transaction are recorded.
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Under this system, both aspect of transaction may not be recorded. In fact, for some transaction both the aspect, for some others one aspect and yet for others no aspect at all are recorded.
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2.
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Accounts Maintained
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Under this system, personal, real and nominal etc.., all the accounts are maintained. Thus, it is a complete and scientificsystem of accounting.
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Under this system, only personal accounts and Cash Book and maintained. Hence, it reamin an incomplete record of accounts.
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3.
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Trial Balance
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Under this system, Trial Balance is prepared and thus, the arithmetical accuracy of all books of account is verified.
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Under this system, Trial Balance cannot be prepared due to incomplete system of accounting. Therefore, arithmetical accuracy of the accounting cannot be verified.
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4.
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Profit or Loss
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Under this system, after a certain period, net profit or net loss can be ascertained by preparing the Profit and Loss Account.
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Under this system, Profit and Loss Account is not prepared to ascertain the net profit or loss. Method for ascertaining the profit or loss is not adequate.
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From the following information supplied by Ms. Sudha, calculate the amount of 'Net Sales'
| ₹ | |
| Debtors on April 01, 2016 | 65,000 |
| Debtors on March 31, 2017 | 50,000 |
| Opening balance of bills receivable as on April 01, 2016 | 23,000 |
| Closing balance of bills receivable as on March 31, 2017 | 29,000 |
| Cash received from debtors | 3,02,000 |
| Discount allowed | 8,000 |
| Cash received against bills receivable | 21,000 |
| Bad debts | 14,000 |
| Bill receivables (dishonoured) | 20,000 |
| Cash sales | 2,25,000 |
| Sales return | 17,000 |
From the following balances, prepare Final Accounts of M/s Raja & Sons for the year ended $31^{st}$ March, $2019$:
Salary ₹ $5,400$; Insurance ₹ $2,500$; Cash ₹ $400$; Purchases ₹ $84,170$; Rent Received ₹ $3,150$; Drawings ₹ $2,100$; Bills Payable ₹ $3,900$; Debtors ₹ $38,080$; Stock ($1^{st}$ April, $2018$) ₹ $29,500$; Bank Overdraft ₹ $9,700$; Carriage ₹$ 2,200$; Creditors ₹ $4,200$; Trade Expenses ₹ $4,900$; Sales Return ₹ $4,700$; Machinery ₹ $12,000$; Wages ₹ $45,000$; Sales ₹ $1,47,200$; Purchases Return ₹ $3,900$; Capital ₹ $58,900$; Closing Stock ($31^{st}$ March, $2019$) ₹ $36,200$.
→Salary ₹ $5,400$; Insurance ₹ $2,500$; Cash ₹ $400$; Purchases ₹ $84,170$; Rent Received ₹ $3,150$; Drawings ₹ $2,100$; Bills Payable ₹ $3,900$; Debtors ₹ $38,080$; Stock ($1^{st}$ April, $2018$) ₹ $29,500$; Bank Overdraft ₹ $9,700$; Carriage ₹$ 2,200$; Creditors ₹ $4,200$; Trade Expenses ₹ $4,900$; Sales Return ₹ $4,700$; Machinery ₹ $12,000$; Wages ₹ $45,000$; Sales ₹ $1,47,200$; Purchases Return ₹ $3,900$; Capital ₹ $58,900$; Closing Stock ($31^{st}$ March, $2019$) ₹ $36,200$.
Briefly list the generic considerations before sourcing an accounting software.
Mukesh Khanna has not kept proper books. However, he gives you the following information relating to the year $2018-19:$
The following balances existed on $1^{st}$ April, $2018 -$ Debtors $₹\ 24,200;$ Furniture $₹\ 18,000;$ Stock $₹\ 30,000;$ Creditors $₹\ 18,000$. The following balances existed on $31st$ March, $2019 -$ Debtors $₹\ 20,800;$ Furniture $₹\ 30,000;$ Stock $₹\ 35,950;$ Creditors $₹\ 34,600.$ Adjustments:
→The following balances existed on $1^{st}$ April, $2018 -$ Debtors $₹\ 24,200;$ Furniture $₹\ 18,000;$ Stock $₹\ 30,000;$ Creditors $₹\ 18,000$. The following balances existed on $31st$ March, $2019 -$ Debtors $₹\ 20,800;$ Furniture $₹\ 30,000;$ Stock $₹\ 35,950;$ Creditors $₹\ 34,600.$ Adjustments:
- Depreciate Furniture by $10\%.$
- Provide upto-date interest on Mrs. Khanna's Loan.
Extracts of Trial Balance as at 31st March, 2017:
Adjustments:
→Adjustments:
- $\frac{3}{4}\text{th}$ of Dewan's bill is irrecoverable.
- Create a provision of 6% on Sundry Debtors.
Tulsi started business on $1^{st}$April, $2016$ with a capital of ₹ $4,50,000.$ On $31^{st}$ March, $2017 $her position was as under:
She owed ₹ $45,000$ to her friend Parvati on that date. She withdrew ₹ $8,000$ per month for household purposes. Ascertain her profit or loss for the year ended $31^{st}$ March,$ 2017:$
→She owed ₹ $45,000$ to her friend Parvati on that date. She withdrew ₹ $8,000$ per month for household purposes. Ascertain her profit or loss for the year ended $31^{st}$ March,$ 2017:$
Kuldeep, a general merchant, keeps his accounts on Single Entry System. He wants to know the results of his business on 31st March, 2019 and for that following information is available:
During the year, he had withdrawn ₹ 5,00,000 for his personal use and invested ₹ 2,50,000 as additional capital. Calculate his profits on 31st March, 2019 and prepare the Statement of Affairs as on that date.
During the year, he had withdrawn ₹ 5,00,000 for his personal use and invested ₹ 2,50,000 as additional capital. Calculate his profits on 31st March, 2019 and prepare the Statement of Affairs as on that date.
From the following information supplied by Sanjay, prepare his Bank Reconciliation Statement as on 31st March, 2019:
| ₹ | ||
| (i) | Bank overdraft as per Pass Book. | 16,500 |
| (ii) | Cheques issued but not presented for payment. | 8,750 |
| (iii) | Cheques deposited with the Bank but not collected. | 10,500 |
| (iv) | Cheques recorded in the Cash Book but not sent to the bank for collection. | 2,000 |
| (v) | Payments received from customers directly by the bank. | 3,500 |
| (vi) | Bank charges debited in the Pass Book. | 200 |
| (vii) | Premium on life policy of Sanjay paid by the bank on standing advice. | 1,980 |
| (viii) | A bill for ₹ 3,000 (discounted with the bank in February) dishonoured on 31st March, 2019 and noting charges paid by the bank. | 100 |
Chaman maintains his books according to Single Entry System. Following figures were available from the books for the six months ended 31st December 2018:
Adjustments:
Adjustments:
- He had withdrawn ₹ 200 in the beginning of every month for household purposes.
- Depreciation on Plant and Machinery @ 10% p.a.
- Further Bad Debts ₹ 5,000 and Provision for Doubtful Debts to be created @ 2%.
- During the period, salaries have been prepaid by ₹ 500 while wages outstanding were ₹ 1,000.
- Interest on drawings to be reckoned @ 6% p.a.
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