Single entry systemunit5

Single entry

Its simple

P.T.O

Don`t follow double entry system!!!!!!!!!!!!!!!!

How it is maintained

The single-entry bookkeeping method records entries once and does not "balance" the transaction out by recording an opposing credit or debit.

Business men

Single-entry accounting is simple and easy to master. It works like the accounting method people use to reconcile their check books: Checks are recorded and deposits in a checking account register. For a business, income is recorded (once) and expenses are recorded (once) and the business books are balanced just like a checking account.

Single and double

The double-entry method can be very confusing at first and often requires a knowledge of accounting practices. But when entries are properly recorded the account books will balance because the total of all credit entries will be equal to the total of debit entries.

Single entry system

In many instances single entry accounting consists of cash book in a tabular format where cash or bank receipts are recorded with positive signs and cash or bank payments are recorded by negative signs. At the end of each working day.

Places for double entry

closing balance of balances is ascertained and is carried forwarded to next day cash / bank book as opening balance. However, in its extended form sales, purchase, and receipts/payments registers are maintained separately along with party ledgers

Internal audit

Statement of profit or loss

Capital at the end Add drawings during the year Less additional capital [profit or loss during the year]

Profit if more capital

Capital at the end Add drawings

Less additional capital Less capital at the beginning Result is the profit or loss

Statement of affairs

Opening capital

Cash in hand

SOA

CREDITORS

BANK BALANCE

ASSETS

FURNITURE

CAS/BANK

STOCK

DEBTORS

CALCULATION OF CAPITAL AT THE END

CREDITORS

CAPITAL

BALANCING FIG

END

LIABILITIES

ASSETSC ASH/BANK

STOCK

DEBTORS/FURNITURE

CALCUALTION BEG AND END CAP

STATEMENT OF PROFIT OR LOSS

CLOSING CAPITAL ADD DRAWINGS LESS ADDITIONAL CAPITAL LESS OPENING CAPITAL

DO THE SUM ILLUSTATIONS AND EXCERCISES

THANK YOU END OF ALL UNITS WISH YOU GOOD LUCK