single entry system maruthu

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welcome

• By M.Manikumar,
• M.com(1).

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SINGLE ENTRY SYSTEM

• Accounting records which are  not
   maintained according  to  double entry principles
   is  known as Single Entry  System.     

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Book keeping

• In other words any  system of book 
  keeping which is not  a  complete double 
  system of book  keeping. 

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 Features of single entry system

• It is  incomplete and unscientific method
• Generally both aspects of debit and 
  credit are not  recorded 
• Less costly. 

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Merits of Single Entry System

• It is  very easy and simple method. 
• It is less costly 
• It is suitable for small business concerns. 

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Demerits of Single Entry System. 

• It is  incomplete and unscientific method. 
• It is not possible to prepare Trail Balance, Prof
  it and loss  account and Balance sheet 

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Statement of Affairs

• Statement of Affairs is like a Balance sheet, whic
  h shows  the estimated  values of Assets and Liab
  ilities

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 Types of Single Entry System

• Pure single entry system. 
• Simple single entry system. 
• Quasi Single entry system

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 pure single entry system

• Under Pure single entry system no
   subsidiary books are  maintained only ledger cont
  aining the personal  accounts 
  of debtors and creditors  are kept.  

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Differences between Statement  of Affairs and    
Balance Sheet. 
 Statement of Affairs Balance Sheet 
1.It is prepared under   single entry system            1. It is prepared under double entry system          
2.Values of assets and  liabilities are estimates.  2. Values of assets  liabilities are true. 
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Differences between single entry 
system and   double entry system. 
Single entry    system Double entry system
1.Both one aspect   Recorded.        1. Both the aspects are  recorded
2.Less costly 2.costly
 3.It is unsatisfactory system 3. It is satisfactory system. 

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Method for Ascertainment of Profits and Loss

• Net worth Method, a trader has to prepare two
  Statements of Affairs, one at the beginning and
  the other at the end. From these Statements, the
  amount of Capital at the beginning as well as at
  the end is ascertained. Then the comparison of
  the Capitals reveals the profit or loss made
  during the period. This system is also known as
  Capital Comparison Method.

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Statement of Affairs Method

• The statement of affairs method resembles your
  company's balance sheet in that it shows the
  company's net worth at a point in time. The
  statement of affairs method compares transactions
  at the beginning period to transactions at the
  ending period to calculate profit and loss.

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System Conversion Methods

• THE process of collecting ,computing and
  recording missing information along with the
  available data in the incomplete book of a
  business it Is called conversion methods.

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