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Single entry
- 1. Single Entry System Dr.S.PASUPATHI AssociateProfessor of Commerce Vivekananda College Tiruvedakam West
- 2. There is nosystem of accounts Incomplete, inaccurate, unscientific and unsystematic system of book keeping. Double aspects of business transactions are not recorded.
- 3. Suitable for soletraders and partnership firms All transactions are not recorded Profit only an estimate True financial position can not be ascertained
- 4. Simple method Number ofbooks maintained is less It is suitable for sole trader, partnership firms
- 5. Incomplete andunscientific method. True financial position cannot be ascertained Comparison with previous years performance is not possible Tax authorities will not accept this accounts.
- 6. S.No. Single EntrySystem Double Entry System 1 Single aspect of transaction is recorded Double aspects are recorded 2 Only personal and cash accounts are prepared All personal, real and nominal accounts are opened 3 Not acceptable by tax authorities Acceptable by tax authorities 4 Suitable only for sole trading and partnership firms Suitable to all business concerns 5 Difficult to ascertain the financial position Financial position can be easily ascertained Single Entry and Double Entry System
- 7. Like a balancesheet, shows the assets and liabilities. The balancing figure of the assets and liabilities are taken. Collection of estimated assets and liabilities.
- 8. Sl.No. Balance SheetStatement of Affairs 1 It is prepared on the basis of ledgers It is prepared on the basis of incomplete books 2 Arithmetical accuracy can be verified Arithmetical accuracy cannot be verified 3 It shows the financial position of the business It shows the capital balances 4 Assets and liabilities are taken from ledgers maintained Assets and liabilities are taken as estimates 5 Easy to find the omissions Difficult to find the omissions Balance Sheet and Statement of Affairs
- 9. Arun a retailmerchant commenced business with a capital of Rs. 12000 on 1.1.2018. Subsequently on 1.5.2018 he invested further capital of Rs.5000. During the year, he has withdrawn Rs.2000 for his personal use. On 31.12.2018, his assets and liabilities were as follows. Calculate the profit or loss made during the year 2018 PARTICULARS AMOUNT Cash at Bank 3000 Debtors 4000 Furniture 2000 Stock 16000 Creditors 5000
- 10. Liabilities Rs. AssetsRs. Creditors 5000 Cash at bank 3000 Capital (Bal.fig.) 20000 Debtors 4000 Furniture 2000 Stock 16000 25000 25000 Statement of affairs of Arun as on 31.12.2018 Solution:
- 11. Closing Capital 20000 Add:Drawings 2000 22000 Less: Additional Capital 5000 17000 Less: Opening Capital 12000 Profit 5000 Statement of Profit or Loss as on 31.12.2018
- 12. From the followinginformation, find out the credit sales: PARTRICULARS AMOUNT Cash Received from Debtors 53000 Discount Allowed 800 Return Inwards 1500 Balance of Debtors on Jan. 2018 10000 Balance of Debtors on Dec. 2018 9500 Bills Receivable from Debtors 13000 Bad Debts during 2018 700 Bills Receivable Dishonoured 950
- 13. TOTAL DEBTORS ACCOUNT PARTICULARSAMOUNT PARTICULARS AMOUNT To Balance b/d 10000 By Cash 53000 To Bills Dishonoured 950 By Discount Allowed 800 To Credit Sales (Bal. Fig) 67550 By Returns Inwards 1500 By Bills Receivable 13000 By Bad Debts 700 By Balance c/d 9500 78500 78500
- 14. References T.S.Reddy andT.Murthy – Advanced Accounting Volume-I, Margham Publications, Chennai 2013. M.C. Shukla, T.S. Grewal and S.C.Gupta,”Advanced Accounts”, S.Chand, New Delhi. S.P. Jain and K.L Narang, “Advanced Accountancy”, Kalyani Publishers, New Delhi. S.N. Maheshwari, “Advanced Accountancy”, Sultan Chand & Sons, New Delhi.