Question
What is the difference between Single Entry System and Double Entry System?
✓
Answer
Difference between Double Entry System and Single Entry System:
|
|
Basis
|
Double Entry System
|
Single Entry System
|
|
1
|
Aspects of a Transaction
|
Under this system, both aspects of a transaction are recorded.
|
Under this system, both aspects of transaction may not be recorded. In fact, for some transactions both the aspects, for some others one aspect and yet for others no aspect at all are recorded.
|
|
2
|
Accounts Maintained
|
Under this system, personal, real and nominal, etc., all the accounts are maintained. Thus, it is a complete and scientific system of accounting.
|
Under this system, only personal accounts and Cash Book are maintained. Hence, it remains an incomplete record of accounts.
|
|
3
|
Trial Balance
|
Under this system, Trial Balance is prepared and thus, the arithmetical accuracy of the books of account is verified.
|
Under this system, Trial Balance cannot be prepared due to incomplete system of accounting. Therefore, arithmetical accuracy of the accounting cannot be verified.
|
|
4
|
Profit or Loss
|
Under this system, after a certain period, net profit or net loss can be ascertained by preparing the Profit and Loss Account.
|
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.
|
|
5
|
Financial Position
|
Under this system, correct financial position of the business can be ascertained by preparing the Balance Sheet.
|
Under this system, Balance Sheet is not prepared. Only Statement of Affairs is prepared. The reason is that the assets and liabilities do not stand at real amounts but at estimated amounts.
|
|
6
|
Adjustments
|
Under this system, adjustments are made at the time of preparing the Final Accounts.
|
There is no provision to make adjustments primarily because of incompleteness of accounts.
|
|
7
|
Use
|
This system is used by almost all the businesses.
|
This system is used by only tiny businesses and institutions.
|
|
8
|
Authenticity
|
This system is considered authentic by the Court.
|
The Court does not consider this system as authentic.
|
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
Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at $31^{st}$ March,$ 2019:$ from the following balances:
The Closing Stock was valued at ₹$ 2,00,000.$
→The Closing Stock was valued at ₹$ 2,00,000.$
From the following Trial Balance, extracted from the books of Raga Ltd., prepare a Profit and Loss Account for the year ended 31st March, 2019 and a Balance Sheet as at that date:
The additional informations are as under:
The additional informations are as under:
- Closing stock was valued at the end of the year at ₹ 20,000.
- Depreciation on Plant and Machinery charged at 5% and on Land and Building at 10%.
- Make a provision for discount on debtors at 3%.
- Make a provision at 5% on debtors for Bad-debts.
- Salary outstanding was ₹ 100 and Wages prepaid were ₹ 40.
- The manager is entitled to a Commission of 5% on Net Profit after charging such Commission.
Sharma & Co. whose books are closed on 31st March, purchased a machinery for ₹ 1,50,000 on 1st April, 2016, Additional machinery was acquired for ₹ 50,000 on 1st October, 2016. Certain machinery which was purchased for ₹ 50,000 on 1st October, 2016 was sold for ₹ 40,000 on 30th September, 2018.
Prepare the Machinery Account and Accumulated Depreciation Account for all the years up to the year ended 31st March, 2019. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account.
Prepare the Machinery Account and Accumulated Depreciation Account for all the years up to the year ended 31st March, 2019. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account.
Bring out the relationship between AIS and Marketing Information System.
From the following balances, prepare Trading, Profit and Loss $A / c$ and a Balance Sheet as at $31^{\text {st }}$ March 2023:-
Take the following adjustments into account:
i. General expenses include ₹ 5,000 chargeable to Furniture purchased on 1st October 2022.
ii. Create a provision of 5% on debtors for Bad and Doubtful Debts after treating ₹ 30,000 as a Bad-debt.
iii. Depreciation on furniture and Fittings for the year is to be at the rate of $10 \%$ per annum.
iv. Closing Stock was ₹ 40,000 , but there was a loss by fire on $20^{\text {th }}$ March to the extent of ₹ 8,000 . Insurance Company admitted the claim in full.
v. a. Goods costing ₹ 2,500 were used by the proprietor.
b. Goods costing ₹ 1,500 were distributed as free samples. Goods were purchased paying CGST and SGST @ 6% each.
→| Particulars | ₹ | Particulars | ₹ |
| Opening Stock | 20,000 | Goodwill | 16,000 |
| Purchases | 2,92,000 | Furniture and Fittings | 58,000 |
| Fuel and Power | 34,000 | Repair Charges | 2,900 |
| Capital | 1,60,000 | Bank | 18,000 |
| Sales | 5,90,000 | Salaries | 1,10,000 |
| Rent | 10,000 | General Expenses | 18,000 |
| Returns Inwards | 16,000 | Debtors | 2,30,000 |
| Cash Discount allowed | 15,000 | Creditors | 1,35,000 |
| Cash Discount received | 19,000 | Output CGST | 5,000 |
| Drawings | 58,100 | Output SGST | 5,000 |
| Input CGST | 8,000 | ||
| Input SGST | 8,000 |
i. General expenses include ₹ 5,000 chargeable to Furniture purchased on 1st October 2022.
ii. Create a provision of 5% on debtors for Bad and Doubtful Debts after treating ₹ 30,000 as a Bad-debt.
iii. Depreciation on furniture and Fittings for the year is to be at the rate of $10 \%$ per annum.
iv. Closing Stock was ₹ 40,000 , but there was a loss by fire on $20^{\text {th }}$ March to the extent of ₹ 8,000 . Insurance Company admitted the claim in full.
v. a. Goods costing ₹ 2,500 were used by the proprietor.
b. Goods costing ₹ 1,500 were distributed as free samples. Goods were purchased paying CGST and SGST @ 6% each.
Distinguish between Profit and Loss Account and Balance Sheet on any six basis.
Draw Bank Reconciliation Statement showing adjustment between your Cash Book and Pass Book as on 31st March, 2011.
- On 31st March, 2011 your pass book showed a balance of ₹ 6,000 to your credit.
- Before that date, you had issued cheques amounting to ₹ 1,500 of which cheques of ₹ 900 have been presented for payment.
- A cheque of ₹ 800 paid by you into the bank on 29th March, 2011 is not yet credited in pass book.
- There was a credit of ₹ 85 for interest on Current Account in the pass book.
- On 31st March, 2011 a cheque for ₹ 510 received by you and was paid into bank but the same was omitted to be entered in cash book.
From the following balances extracted from the books of Sharma, prepare the Trading and Profit & Loss Account for the year ended 31st March 2019 and Balance Sheet as at that date after taking into consideration the adjustments given below:
Adjustments:
Adjustments:
- Closing Stock was valued at ₹ 61,700.
- Depreciate Furniture and Machinery @10% p.a. and Sale Van @20% p.a.
- Outstanding Rent amounted to ₹ 900.
- Bad Debts ₹ 200.
- Make a provision for Doubtful Debts @5% on Debtors.
- Charge one-fourth of salaries and wages to the Trading Account.
- A new machinery was purchased on credit and installed on 31st December 2018 costing ₹ 15,000. No entry for the same has yet been passed in the books.
Describe in steps the design view method to create a query in MS Access?
Following Trial Balance has been extracted from the books of prased on 31st march. 2019: 
Additional information:
Additional information:
- Outstanding Salaries were ₹ 45,000.
- Depreciate Machinery at 10%.
- Wages outstanding were ₹ 5,000.
- Rent prepaid ₹ 10,000.
- provide for interest on capital @ 5% per annum.
- Stock on 31st March, 2019 ₹ 5,00,000.