A single entry system is a method of maintaining financial information thru one

sided accounting entry. It method is also known as single-entry accounting

system. Normally small businesses preferred to maintain single-entry
bookkeeping system with records of minimum necessities. Single entry
system example: such accounting system is pretty good to maintain records
related to cash, account payable, receivables, taxes paid account and few other
accounts. Accountant professionals typically include additional information along
with this single-entry system to prepare financial reports and statements of the
business. Advantages of a Single Entry Bookkeeping System: Single entry
system is simple and less expensive to maintain as compared to double entry
system. No professionals are required to maintain such accounting system as
compared to double entry system. This type of accounting system is more
preferable to start-up businesses. System records daily flow of income and
expenses thru daily cash receipt summary. Single entry system is based on
income statement due to which it is each to figure out profit and loss of the
business or organisation at any given time. Disadvantages of a Single Entry
Bookkeeping System: Lack of data may adversely affect planning and controlling
of business strategic goals. Lack of methodical and exact accounting data can
lead to improper control over the business issues and lack of administration. Any
losses or theft are less likely to be found under this accounting system. Single
Entry Format / Single Entry Example: An oldest form of single entry bookkeeping
system is cash book. Lets take a example of single entry system format from
cash book to further understand single entry accounting system. F. No. Date
Description Income Expense Inventory Salaries 01-Apr Balance b/d Rs. 45,000
Rs. 17,000 Rs. 9,300 Rs. 12,500 E011 08-Apr Utilities Purchased Rs. 3,400
E012 12-Apr Merchandise Rs. 17,300 E013 17-Apr Wages Paid Rs. 9,000 23-
Apr Bank deposit Rs. 22,700 E014 27-Apr Supplies Rs. 5,200 30-Apr Balance
c\d Rs. 67,700 Rs. 25,600 Rs. 26,600 Rs. 21,500 Single Entry System Problems
and Solutions: There are various different single entry system problems
associated with accounting system they are: Tracking of assets are not done
effectively. It is likely to be lost or stolen without any knowledge. It is impossible to
conduct financial audits for single entry bookkeeping method. Information has to
be initially converted into double-entry system for financial auditing purpose. It is
likely that errors and omissions may occur in single entry system. Otherwise in
double accounting system, all the different accounts first have to be matched
before taking preparing balance sheet which makes double accounting system
error free. There is no provision to track the liabilities under single accounting
system. One has to maintain books separately to keep records of payment dues.
Single entry system lacks with complete financial data due to which business
management does not have sufficient information or clear picture to take right
action at right time. Financial accounting for single entry system solution is that
now a days, all the computerized accounting systems are built based on double
entry bookkeeping method. Since this financial accounting system has limitations
due to which businesses switch to double entry system of accounting. Single
bookkeeping methods are now only used by small and newly start-up
businesses. So it is recommended to switch to double entry system with
the growing business to large scale. Accounting professionals are expert in
converting single entry accounting into double entry accounting. At the same time
it is time consuming to restructure and reconstruct all the statements and reports
again. If you are using single entry accounting system and planning to switch to
other method, It is highly recommendable to switch to double entry system at the
start of accounting year rather than converting at the later stage.
Preparation of the Statement of Affairs (With Specimen)

Read this article to learn about the preparation of statement of affair in

case of voluntary winding-up of a company!
According to Sec. 454, within 21 days of the date of the winding-up order to
the appointment of the official liquidator as provisional liquidator, the company
has to submit a statement to the official liquidator as to the affairs of the
company unless the Court otherwise orders. The statement must be in the
prescribed form.

It must be verified by affidavit and must contain the following

particulars:
(i) The assets of the company, stating separately the cash in hand and cash at
bank and negotiable securities.