What are the advantages of single entry book keeping system? Write in points.
Answers
Answer:
1 Easy to understand: A single entry system is very easy to understand even a layman can understand. so, prepare the accounts is very easy.
2 Cost-effective: In single entry system we not require any accountant and chartered accountant for audit the account so the cost is very less cooperative to double-entry book-keeping system
3 Time-Saving: Under single entry system, we record only one entry for every transaction thus, this lead to time-saving for the business
4 Good For Small Business: Small business can implement the single entry system as it is cost-effective and easy to understand
5 Helps in Decisions Making: It provides the basic information to the manager about the sales and profit so they can make decisions accordingly.
6 Evidence of transaction: Any written document use as evidence. Single entry account book records all the transactions so this can be use as evidence.
7 Replace Memory: under this system, we recorded all the transactions. In case we forget the transaction we can check those in the accounting books.
1. since, this system is very simple ,anyone can maintain it with out any adequate knowledge of accounting
2. linited accounts are to be opened under this system