Question

13. State any five limitations of Single Entry System​

Answer 1

Explanation:

Limitations of Single Entry:

Full information about the business cannot be obtained because incomplete records are maintained.

The arithmetical accuracy of the accounts (i.e., Trial Balance) cannot be tested in the absence of Double Entry.

Answer 2

Answer:

I hope that the answer given below will help u

Explanation:

1. An incomplete and unscientific method.

This system is incomplete because real and nominal accounts are not prepared and also due to the fact that the debt and credit aspect of all transactions are not recorded.

2. Trial balance cannot be prepared.

Quite often this system does not record both the aspects of transactions, therefore, at the end of the year, arithmetical accuracy of the books cannot be checked by preparing a trial balance.

3.Lack of mathematical accurateness.

There is no record of balances of accounts because we donot make ledger.

4. Performance of the business cannot be ascertained.

Trading, profit and loss account cannot be prepared and hence the gross profit, net profit, and rate of net profit on sales cannot be known.

5. True financial position cannot be ascertained.

It is very difficult to prepare a balance sheet, so the true financial position cannot be ascertained.