Which of the following are regarded as features of the single-entry system, generally maintained by small shopkeepers? (i) Maintenance of transactions related to personal accounts on the double-entry basis and maintenance of transactions related to real and nominal accounts on the single-entry basis. (ii) Maintenance of a cash book with mixed transactions. Normally, both personal and business transactions are mixed in a cash book. (iii) Form and accounting accuracy of the single-entry system differ from firm to firm.
All of (i), (ii) and (iii)
The correct answer is All of (i), (ii) and (iii).
The single-entry system is an incomplete and unscientific method of book-keeping generally maintained by small shopkeepers who cannot afford the rigour of the double-entry system. Its key features include all three statements:
(i) Personal accounts (debtors and creditors) are usually maintained on a double-entry basis, while real and nominal accounts are kept on a single-entry basis or ignored altogether.
(ii) A cash book is maintained, but it typically mixes the proprietor's personal transactions with business transactions, making it impure.
(iii) There is no uniform format or accounting accuracy; the form of records differs from firm to firm depending on the convenience and needs of the owner.
Hence, all three statements (i), (ii) and (iii) correctly describe the features of the single-entry system.
Similar Questions
Match the following accounting concepts with the meaning/implications.
Accounting
Concept
Meaning
Implication
(i)
Money
measurement
concept(a)
Capital of the proprietor is considered as a liability
(ii)
Business
entity concept(b)
Fixed assets are
valued on a cost basis(iii)
Going concern concept
(c)
Changes in purchasing power are ignored
Which of the following statements is correct?
In relation to the single-entry system, which of the following statements is INCORRECT?
A Trial Balance may be prepared according to Totals Method and ________ Method.
If the two sides of the Trial Balance tally, it is an indication that ______.
Kohler defines Single Entry System as, "A System of book-keeping in which as a rule only records of ____ and of personal accounts are maintained".
The technique of finding out the net balance of a ledger account, after considering the totals of both debit and credit sides, is known as ______.
Which of the following statements is INCORRECT?
Which of the following statements is correct?
______ is defined as a statement or a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy.
Important Questions from Basics of Accounting
Professional people like doctors, lawyers, etc., ascertain their profit or loss under
Prepaid Rent A/c is a
“Legal expenses incurred to defend a suit for breach of contract to supply goods” is
Which of the following statements are true?
1. Prepaid rent is a Personal A/c.
2. Interest on Drawings is an income for the business.
3. Accrued income and income due but not received are same.
4. Cost of obtaining licence to carry out business is a capital expenditure.
Match List I with List II.
List I (Accounting Concepts)
List II (Purpose/Applicability)
A.
Going Concern Concept I.
The same accounting method used by a firm from one period to another B.
Consistency II.
Relate to the relative size or importance of an item or event C.
Cost concept III.
This an inappropriate assumption for a firm undergoing bankruptcy D.
Materiality
IV.
The normal basis used to account for assets
Choose the correct answer from the options given below:
