Write the main characteristics of single entry system.
Answers
Answer:
Single entry system is an incomplete form of recording financial transactions. It is the system, which does not recordtwo aspects or accounts of all the financial transactions. It is the system, which has no fixed set of rules to recordthe financial transactions of the business
Answer:
The main characteristics of single entry system
1. It has no xed rules and principles, hence it may vary in different institutions.
2. Only cash book is kept, in which both personal and business entries of cash transactions are made.
3. Only personal accounts are opened in it.
4. One has to depend on original documents for getting information for various dealings.
5. No trial balance can be made for examining the mathematical accuracy.
6. Due to incomplete accounts the estimated prot or loss cannot be called accurate or exact.
7. Exact nancial position cannot be known through this system.
8. As it is incomplete it cannot be presented as an authentic proof in any court.
9. It is more suitable for smaller businessmen as it is single and time saving.