Needs and importance about single entry system
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Single Entry system can be used because ;
● Simple And Easy
Single entry system is simple to understand and easy to maintain as it has no fixed set of principles to follow while recording financial transactions.
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●Economy
Single entry system is an economical system of recording financial transactions. It does not require hiring skilled accounting personnel to record financial transactions of the business. Further, it does not require large number of books to record the limited number of financial transactions.
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●Easy To Calculate Profit
Under single entry system, the amount of profit can be determined easily. The amount of profit or loss of the period can be determined by making comparison between the amounts of closing capital and opening capital.
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●Suitable For Small Business
The single entry system is simple, easy, and economical system. It is suitable for small businesses because they can not afford the cost of double entry system. Besides, small business are not required to maintain their books of accounts under double entry system.
_______________________________
● Simple And Easy
Single entry system is simple to understand and easy to maintain as it has no fixed set of principles to follow while recording financial transactions.
_______________________________
●Economy
Single entry system is an economical system of recording financial transactions. It does not require hiring skilled accounting personnel to record financial transactions of the business. Further, it does not require large number of books to record the limited number of financial transactions.
_______________________________
●Easy To Calculate Profit
Under single entry system, the amount of profit can be determined easily. The amount of profit or loss of the period can be determined by making comparison between the amounts of closing capital and opening capital.
_______________________________
●Suitable For Small Business
The single entry system is simple, easy, and economical system. It is suitable for small businesses because they can not afford the cost of double entry system. Besides, small business are not required to maintain their books of accounts under double entry system.
_______________________________
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