Meaning of Single Entry Book Keeping System
Under single entry book keeping system, only one aspect of a transaction is recorded, so it is known as incomplete system of recording transactions. Under it only records of cash and personal accounts are maintained. In it, accounts relating to debtors , creditors and cash are prepared. It ignores all impersonal account like salaries, wages, sales, purchases,etc. It maintains a cash book and personal accounts but does not record nominal and real accounts. It is not a reliable system but it is still used by small organizations to keep the records of transactions.
Features of Single Entry Book Keeping System
1. It maintains only accounts relating to person but it ignores the real and nominal accounts.
2. It prepares the cash book but both personal and business cash transactions are recorded in the same book.
3. It is suitable to small traders having lesser numbers having lesser number of transactions.
4. It lacks the specific rules of maintaining books of accounts as a result there is no uniformity in accounts of
different firms.
5. Trial balance cannot be prepared under this system.
6. The profit or loss calculated under this system is only a guess.
Under single entry book keeping system, only one aspect of a transaction is recorded, so it is known as incomplete system of recording transactions. Under it only records of cash and personal accounts are maintained. In it, accounts relating to debtors , creditors and cash are prepared. It ignores all impersonal account like salaries, wages, sales, purchases,etc. It maintains a cash book and personal accounts but does not record nominal and real accounts. It is not a reliable system but it is still used by small organizations to keep the records of transactions.
Features of Single Entry Book Keeping System
1. It maintains only accounts relating to person but it ignores the real and nominal accounts.
2. It prepares the cash book but both personal and business cash transactions are recorded in the same book.
3. It is suitable to small traders having lesser numbers having lesser number of transactions.
4. It lacks the specific rules of maintaining books of accounts as a result there is no uniformity in accounts of
different firms.
5. Trial balance cannot be prepared under this system.
6. The profit or loss calculated under this system is only a guess.
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