Documentos de Académico
Documentos de Profesional
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Incomplete
Records
( Single Entry System )
Presented by:-
Jaishree Asnani
Roll no. 110065
Definition:-
transactions
Advantages
Simple method.
Economical.
Economy of time.
Useful for small firms.
Tax evasion.
Disadvantages
Incomplete and Unscientific
Methods
Trial Balance is not prepared
No knowledge of financial position
Control over assets is not possible
Unacceptable to tax authorities
Difficulty in obtaining loans
Difference between single entry and double entry
Basis Single entry system Double entry system
1.Double aspect Double aspect of Double aspect of
transaction are not transaction are recorded in
recorded in it. it
2.Types of Only personal accounts Personal, Real and Nominal
accounts are prepared accounts are prepared
3.Trial Balance Trial balance is not Trial balance is prepared to
prepared so arithmetical check arithmetical accuracy
accuracy cannot be
checked
4.Net Income
It is only an estimate of Actual net profit is
profits calculated
5.Suitability Suitable for sole trader, Suitable for all business
who has got lesser number enterprises whether sole
of transactions and that trade or partnership or
too only of cash nature companies
Methods of estimating profit under Single Entry System
es Overdraft
Bank ……. ……. Cash at
bank \hand
……. …….
Bills Payable ……. …….
Income Accrued ……. …….
Creditors ……. …….
Prepaid
……. …….
Outstanding Expenses
……. ……. …….
Expenses Debtors …….
Capital Bills ……. …….
(balancing figure) Receivables
……. …….
……. ……. Stock
Furniture ……. …….
Building ……. …….
……. …….
Statement of Affairs
( as on ……)
Amount (Rs) Amount (Rs)
Liabiliti 1-1-08 31-12-08 Assets 1-1-08 31-12-08
es
Bank Overdraft
Bills Payable
---- 3350
200
Cash at bank 4350 …….
1000 Debtors 12000 14000
Creditors 9000 1500
Bills 5000
4000
Capital 41650 49950 Receivables
(balancing figure) 18700 23400
Stock
Furniture 600 600
Building 12000 12000
8840
Add: Prepaid Insurance : 250 250
53170 53170
Thank
Thank you
You