1. Explain the double entry system of accounting.

The double-entry system of accounting or bookkeeping means that for every business
transaction, amounts must be recorded in a minimum of two accounts. The double-entry system
also requires that for all transaction, the amounts entered as debits must be equal to the
amounts entered as credits.
2. Explain the single entry system of accounting.
A single entry system of accounting is a system of book keeping in which incomplete
records are maintained. Under this system, records of only cash and personal accounts are
maintained. There are no defined set of rules to be followed. It is particularly suitable for small
businesses with a limited number of transactions. Accounts maintained under this system are
known as incomplete double-entry records.
3. What is the major record in a single entry system?
In single-entry system, cash disbursements and cash receipts are mostly recorded. It will
record incoming and outgoing money in the cash book. Usually, the assets and liabilities are
track separately.
4. What is the single entry formula in computing net income for a proprietorship?
In computing net income for a proprietorship is Closing Capital adds Drawings less
Opening Capita is equal to net Profit.
5. What is the single entry formula in computing net income for a corporation?
In computing net income for a corporation is Total Revenues less expenses