Tuesday 19 July 2011

Single Entry system


SINGLE ENTRY SYSTEM
CHAPTER # 2
1.      What is single entry system of book keeping?
Single entry system may be defined as a system in which accounting records are not kept strictly according to the double entry system of book keeping.
2.      Write down the formula for determining the net profit under net worth method?
The formula for determining the net income may be put as follows
Net income      =          capital at the end (Ending Capital
                                    (+)       Drawings
                                    (-)        Additional capital (Fresh capital) introduced
                                    (-)        Capital at the beginning (Beginning capital)
3.      Define characteristics of single entry system?
  • It is suitable for the small businesses
  • Only personal account are kept
  • This system is flexible
4.      What are the limitations/defects of single entry system?
The defects of this system may be summed up as follows.
  • Under this system only partial and incomplete record is kept because two fold aspects of transactions are generally ignored.
  • As the two fold aspects of every transaction are not recorded a trial balance cannot be drawn up to test the arithmetical accuracy of the record
  • As nominal accord are not maintained a profit and loss account cannot be prepared for want of information regarding the various income and expenditures
  • As no real account are maintained the preparation of a balance sheet is not possible
5.      Write down the fundament balance sheet equation?
Assets = Liabilities + Owner’s Equity
6.      How many methods are for preparing final account from single entry system?
There are two methods for preparing the final account
1)      First method of statement of affairs
2)      Second method conversion into double entry system

7.      What is statement of affairs?
It is statement of assets and liabilities (including capital) prepared under the single entry system.
8.      Define balance sheet?
It is statement of assets and liabilities (including capital) prepared under the Double entry system.
9.      What is major difference between single entry system and double entry system?
Under entry system both debit and credit aspects of all the transactions are recorded whereas under single entry system some transactions are not recorded at all while some transactions are recorded in only one of their aspect either debit aspect or credit aspect ( only one aspect of transaction).
10.  What will be the capital of proprietor, in his assets are of Rs. 87000 and liabilities are of Rs. 20000?
      Assets-Liabilities = Capital
      87000-20000= 67000
11.   What shall be the profits of the concern in beginning capital is Rs 8000 and capital at the end Rs, 9000 drawing during the  year is Rs 1800 fresh capital Introduce Rs 500?
Net income            =          capital at the end (Ending Capital                                          9000
(+)       Drawings                                                                     1800
                                    ____________________________________________________
                                                                                                                                    10800
                                    (-)        Additional capital (Fresh capital) introduced             500     
                                    (-)        Capital at the beginning (Beginning capital)              8000
                                    ____________________________________________________
                                                                                                                                    2300
12.  Calculate the missing figures profits made during the year Rs, 2400 Drawing Rs.1200 capital at the end Rs 8000 opening capital? Fresh capital introduced during the year Rs 2000?
Net income = capital at the end (+) Drawings (-) Additional capital (-) Capital at the beginning
      2400 =       8000 + 1200-2000-Capital at the beginning
        Capital at the beginning = 8000 + 1200-2000-2400 = 4800
13.  Calculate the Net income/Loss
      Opening capital Rs. 5000, capital introduced Rs.1000
        Net income = capital at the end (+) Drawings (-) Additional capital (-) Capital at the beginning
        Net Loss = 0+0-1000-5000=   -6000
14.  Calculate the drawing s during the year:
Capital in the beginning Rs, 20000                    Capital introduced Rs, 25000
      Profit made during the year Rs.15000
        Net income = capital at the end (+) Drawings (-) Additional capital (-) Capital at the beginning
      15000 = 0+Drawings-25000-20000
      Drawings = 15000+25000+20000 = 60000
15.  How Many methods are for conversion from single entry to double entry?
·         Prospective ( on and from the date on which arrangements are made for conversion)
·         Retrospective (on and from a date before the date of conversion)
16.  In case of conversion of single entry system into double entry. What necessary information / item are required for the preparation of trading account?
      In order to prepare trading account following information’s / items are required
      Opening stock + purchase + direct expenses-sales- closing stock
17.  In case of conversion of single entry system into double entry. What necessary information / item are required for the preparation of profit and loss account?
      The following item are required in order to prepare the profit and loss account
      Indirect expense- other incomes
18.  In case of conversion of single entry system into double entry. What necessary information / item are required for the preparation balance sheet?
Following information are required in order to prepare the balance sheet
·         All assets
·         All liabilities
·         Opening capital
·         Profit or loss of the year
19.  How to prepare to Total debtors accounts?
Total debtors account
Opening balance
cash received from debtor during the period
credit sales
B/R Received
B/R dishonored
Return Inward

Discount allowed

Bad debts

Closing balance

20.  How to prepare total creditors accounts?
Total Creditor account
Cash paid to creditors
Opening Balance
B/P granted
Credit Purchases
Return outward
B/P dishonored
Discount received

Closing balance




















13 comments:

  1. Please Some Buddy Explain me this Trouble method ?

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  2. plz some buddy explain me this single entry problems

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  3. this method is difficult but why exam question no1...<><><><><>

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  4. singel entry is known as like we have a small business and we are just doing whole day work in book that is called singel entry
    and doubel entry is to make proper way of accounting like if we are expending our money at business and then we are gona sell any thing to any 1 so we have to enter those entry at our book like we sell a sope then we will enter 1 entry at debit and 2nd entry at credit thats all :P

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  5. if i am wrong so plz tell me ok all buddys

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  6. This comment has been removed by the author.

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  7. How to prepare conversion method in single entry system.....

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  8. How to calculate interest on capital in single entry system?formula??!

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