Describe conversion method of single entry system?
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CONVERSION METHOD
"Conversion method also known as transaction approach, In this method single entry record is converted into double entry and then financial accounts are prepared."
Steps to be performed:
1- Open up debtor a/c, creditor a/c, cash a/c, bank a/c, inventory a/c, and expenses a/c whose opening and closing balances are given.
2- Pass the double entry for each fig appearing in the question starting from the top of Q.
3-Read the information given to calculate missing information. missing information will be calculated as balancing figure.
4- Complete the profit and loss, balance sheet.
Thanks for asking. Hope it helps you!
"Conversion method also known as transaction approach, In this method single entry record is converted into double entry and then financial accounts are prepared."
Steps to be performed:
1- Open up debtor a/c, creditor a/c, cash a/c, bank a/c, inventory a/c, and expenses a/c whose opening and closing balances are given.
2- Pass the double entry for each fig appearing in the question starting from the top of Q.
3-Read the information given to calculate missing information. missing information will be calculated as balancing figure.
4- Complete the profit and loss, balance sheet.
Thanks for asking. Hope it helps you!
Answered by
2
Answer:
CONVERSION
METHOD
"Conversion method also known as
transaction approach, In this method
single entry record is converted into
double entry and then financial accounts
are prepared"
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