Characteristics of Single Entry System

Single entry system is that system of accounting in which we don't keep full record. We just record cash receipt and payments, debtors and creditors. We leave to record all other assets, liabilities and nominal accounts. So, it is very difficult for us to prepare trial balance, profit and loss account and balance sheet. It is totally unscientific system of accounting.

We can explain its main characteristics in following points :-

1. No Following Rules of Double Entry System of Book Keeping 

This system of accounting does not follow double entry system's rules. In double entry system, we record each transaction into two accounts. One account will be debit and other account will be credit. But in single entry system, we keep record only in one account. For example, we make cash book for recording receipt and payment but we do not open the accounts which are shown in cash book. We have purchased furniture. This furniture's cash payment will show in the cash book but we do not open furniture account in single entry system.


2. No Real and Nominal Accounts

In single entry system, we do not make real and nominal accounts. Real accounts are of physical assets account which are not opened in single entry system. Nominal accounts of expenses and incomes which are also not opened in single entry system.

3. Only in Small Individual Business

This system of accounting is only suitable for small individual business because with this system we can just take the idea of our total cash, total debtors and total creditors. We can not find our financial position and income position in this system of accounting.

Related : MCA Accounting Notes 
.
Name

"accounting software" "cost accountant" "financial management" account accountant accounting accounting education accounting format accounting glossary accounting questions accounting software ad advertising american express answer auditing b.com balance sheet bank bba BCA bonus business Business Dictionary CA CA- IPCC CA-CPT CA-Final capital career Category cfa children coaching company conferences Consignment Accounting contact corporate accounting cost cost accounting CPT credit card debit card debt degree depreciation dictionaries donation earning ecommerce economics education Events finance Finance Dictionary financial financial accounting financial mathematics Financial Ratios forex management free funds google google apps google talk guest writer Help Center ICWAI IFRS inspiration insurance terms interest journal entries lectures List m.com management accounting mathematics MBA MCA media mutual funds ngo notes overhead pdf pnb presentation Prof. Vinod profiles quickbooks quiz ratio rbi reporting Service Tax shares solution students tally tax teacher teaching Test Testimonials tips treasury management tutorial UGC NET Commerce video webinars Wikipedia working capital
false
ltr
item
Education of Accounting : Characteristics of Single Entry System
Characteristics of Single Entry System
Education of Accounting
http://education.svtuition.org/2013/12/characteristics-of-single-entry-system.html
http://education.svtuition.org/
http://education.svtuition.org/
http://education.svtuition.org/2013/12/characteristics-of-single-entry-system.html
true
8374141921294355176
UTF-8
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock