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 of the business concerns.  There is no uniformity in maintenance of the accounting records of different concerns.

SINGLE ENTRY SYSTEM

 In other words, the incomplete double entry is called single entry system.

SINGLE ENTRY SYSTEM

Meaning of single entry system:
The term single entry 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.

SINGLE ENTRY SYSTEM

Definition : E.L Kohler in Dictionary for 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 circumstances

SINGLE ENTRY SYSTEM

Following are the special feature of this system:  Both aspect of each and every transaction are not recorded in the books of account.  Under this system the personal accounts of debtors 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 entry system . 2)Simple single entry system 3) Quasi single entry system

SINGLE ENTRY SYSTEM

SINGLE ENTRY SYSTEM

SINGLE ENTRY SYSTEM

. Quasi single entry 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 along with cash book and ledger and the posting are made only to the personal accounts of debtors and creditors. The entries relating to other accounts remain unspotted.

SINGLE ENTRY SYSTEM

Merits of single-entry system: 1. It is a simple method of accounting because the number of books maintained is less. 2. It is not costly because the labor involved in maintaining the accounts is considerably less. 3. The recording of the transaction can be made without delay in a precise manner. 4. This system is suitable for small concerns.

SINGLE ENTRY SYSTEM

Demerits of single-entry system: 1. Method of accounting: Since the two-fold aspects of each and every transaction are not recorded, it is defective and unscientific. 2. Trail balance: Since the two-fold aspects of each and every transaction are not recorded, the trail balance cannot be prepared. Hence, the arithmetical accuracy of the books of account cannot be checked.

SINGLE ENTRY SYSTEM

3. Trading account: 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. Profit and loss account: Since the normal accounts i.e. accounts of income and expenses are not maintained, profit and loss accounts be prepared. Hence it is not possible to ascertain the exact net profit.

SINGLE ENTRY SYSTEM

5. Balance sheet : since the real accounts and the personal accounts, other than debtors and creditors, are not maintained, the balance sheet cannot be prepared. Hence it is not possible to know the exact financial position of business. 6. Value of business: since the exact value of assets and liabilities are not available, the sale price of the business cannot be ascertained easily.

SINGLE ENTRY SYSTEM

7. Reliability of accounts: Since the accounts are incomplete and inaccurate, they are not reliable to the outsiders. 8. Misappropriation: Since the accounts are incomplete misappropriation and frauds cannot be detected.

SINGLE ENTRY SYSTEM

STAT EM ENT of AFFAIRS: 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 of the assets and liabilities shown in this statement are based on estimates made by the proprietor. This statement is prepared in order to ascertain the capital on a particular date.