SINGLE ENTRY SYSTEM

1 . which are not strictly kept according to Double Entry System are known as Incomplete Records.MEANING Accounting records.

2 . Prepared according to the needs and convenience. Cash transactions and personal accounts are properly Maintained. Profit or loss cannot be ascertained with high degree of accuracy.CHARACTERSTICS Unsystematic Method. Personal transactions of owner also included.

Convenient mode of maintaining records. 3 . Inexpensive method. Less time consuming.REASONS OF INCOMPLETENESS Adopted by people who do not have the proper knowledge.

4 . Omission of important data is possible. Theft and other losses are less likely to be detected. liquidity and solvency of business cannot be made. Difficulty in filling an insurance claim.LIMITATIONS Trial balance cannot be prepared. Difficult to convince the income tax authorities. Analysis of profitability. Correct ascertainment and evaluation cannot be made.

DOUBLE ENTRY SYSTEM V/S SINGLE ENTRY SYSTEM Both aspects Accounts Trial balance Use Authenticity Profit or loss 5 .

THANK YOU Prepared By: Parineeta Mittal .

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