Question

can a limited company maintain its account under single entry system. give reason?​

Answer 1

Answer:

No, a limited company maintains its account under a single entry system.

Explanation:

• The concerns which are engaged in the works of public utility are called public utility concerns.
• Concerns that provide electricity, water, and gas, etc are called as public utility enterprises. Such concerns are established under Special Acts of Parliaments,
• Their accounts are prepared on the basis of a "double account system".
• There is a special method for the preparation of annual accounts of such big companies.
• under this system annual accounts are prepared in such a manner that expenditures occurred on fixed assets and receipts on fixed liabilities are shown in a separate account called " capital account".

Thus, Public utility concerns maintain the double entry account system.

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Answer 2

Answer:

No, a limited corporation uses a single entry system to manage its accounts.

Explanation:

• Public utility concerns are businesses involved in utility-related activities.
• Public utility enterprises are companies that offer services like gas, water, and electricity. Such organisations are created by special acts of parliament, and the "double account system" is used to generate their financial statements.
• The yearly accounts of such large corporations are prepared using a particular approach.
• Under this method, annual accounts are produced in a way that separate accounts called "capital accounts" are used to record receipts on fixed obligations and expenditures on fixed assets.
• Public utility companies continue to use the double entry account system as a result.

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