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WEEK 9
TOPIC: SINGLE ENTRY & INCOMPLETE RECORDS
CONTENTS:
- Meaning of single entry
- Limitations of single entry
- Book-keeping rules for single entry
- Preparation of statement of affairs
- Preparation of profit and loss
Sub-Topic 1: MEANING OF SINGLE ENTRY
This is a system of book keeping which does not conform to the basic principles of double entry. The records kept by the record keeper are not complete or inadequate; hence the accountants have to use their ingenuity to prepare the accounts from the available information. Incomplete records present a large amount of unsorted information.
Features
- Final accounts are prepared by comparing financial data of two or more years
- Accounting information is grossly inadequate
- Mostly, records are kept on loose sheet or only cash book is kept
- There is no accounting system in such an organization
Limitations of single entry
- It does not conform to the principle of double entry
- The flexibility of the double entry principle is lacking
- It is difficult to obtain accurate information since the records are not complete
- It is difficult to arrive at the profit for the year
Book keeping rules for single entry
- The opening statement of affairs will be prepared to show the opening capital
- Adjust the capital by adding any additional capital contributed either in cash or assets and deduct drawings either in cash or goods
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