SINGLE ENTRY SYSTEM The accounting records of such traders are
considers as incomplete and this systems is called single entry systems of bookkeeping. Under this system the transaction are
recorded as per the needs recorded ne eds of the business concerns. There is no uniformity in maintenance of the
accounting records of diff different erent concerns.
SINGLE ENTRY SYSTEM In other words, the incomplete double entry
is called single entry system.
SINGLE ENTRY SYSTEM Meaning
of single entry system system:
The term single entry system system means a system of maintaining the accounting records of the business transaction, in a manner convenient to a particular trader, where the principle of double entry is not applied for all the transaction. In the other words, the single entry is an incomplete form of book-keeping. book-keeping.
SINGLE ENTRY SYSTEM Definition
:
E.L Kohler in Dictionary for accountants accountants define single entry system as A system of book-keeping in which, as a rule, only records of cash and personal accounts are maintained; it is always incomplete double entry system, varying with the circums circumstances tances
SINGLE ENTRY SYSTEM Following
are the special feature of this system:
e ach and every transaction are Both aspect of each not recorded in the books of account. system stem the personal pe rsonal accounts of Under this sy debtors and and creditors and cash and bank accounts are commonly maintained. The other personal accounts and the real and
nominal accounts are not maintained.
SINGLE ENTRY SYSTEM
SINGLE ENTRY SYSTEM
1) Pure single ent entry ry syst system em .
2)Simple single entry system
3) Quasi single singl e entry system
SINGLE ENTRY SYSTEM
SINGLE ENTRY SYSTEM
SINGLE ENTRY SYSTEM . Quasi single entry system: system: It is a system where some of the subsidiary book, namely purchase book, sale book, purchase returns, sale returns book, bills receivable and bills payable are maintained maintained along with cash book and ledger and the posting are made only to the personal accounts of debtors de btors and creditors. The entries relating to other accounts remain unspotted.
SINGLE ENTRY SYSTEM Merits
of single-entry system: system:
1. It is a simple method of accounting because the number of books maintained maintained is less. 2. It is not costly because the labor involved involved in maintaining the accounts is considerably less. 3. The re reco cord rding ing of the the tr trans ansact action ion ca can n be mad made e without delay in a precise manner. 4. Thi Thiss sys system tem is suit suitabl able e for for smal smalll concer concerns. ns.
SINGLE ENTRY SYSTEM Demerits
1.
of single-entry system system::
Method
of accounting: accounting: Since the two-fold two-fold aspects of each and every transaction are are not recorded, recorded, it is defective defective and unscientific.
2. Trail balance: Since the two-fold two-fold aspects of each and every transaction t ransaction are are not recorded, recorded, the trail balance cannot be prepared. Hence, the arithmetical accuracy accuracy of the books of account cannot be checked. checked.
SINGLE ENTRY SYSTEM 3. Tradi ding ng acc ccou oun nt: since the account pertaining to goods namely, purchases, sales, etc, are not recorded, the trail balance cannot be prepared. Hence, it is not possible to ascertain the exact gross profit. 4. Prof Profit it an and d los losss ac acccou ount nt:: Since the normal accounts i.e. accounts of income and expenses are not maintained, profit and loss accounts be prepared. prepared. Hence it is not possible to ascertain the ex exact act net profit.
SINGLE ENTRY SYSTEM 5. Balance
sheet : since the real accounts and the personal accounts, other than debtors and creditors, creditor s, are not maintained, the balance sheet cannot be prepared. prepared. Hence it is not possible to know the exact financial position of business.
6. Value of bu business: since the exact value value of assets a ssets and liabilities are not available, the sale price of the business cannot be ascertained easily.
SINGLE ENTRY SYSTEM 7.
Rel elia iabi bili lity ty of ac acco coun unts ts:: Since the accounts are incomplete and inaccurate, they are not reliable to the outsiders.
8.
isappropriation:: Misappropriation
Since the accounts are are incomplete misappropriation misappropriation and frauds f rauds cannot be detected.
SINGLE ENTRY SYSTEM STA ST ATEM ENT of A FFAIRS: It is a statement containing the various assets and
liabilities of the business as on a particular date. It is just a balance sheet because the assets are
shown on the right hand side and the liabilities on the left hand side. But it is not called balance sheet because many m any of
the assets and liabilities shown in this statement statement are based on estimates made by the proprietor. This statement is prepared in order to ascertain
the capital on a particular date.
