Which of the following is NOT true about the single entry system?
Personal, real and nominal accounts are prepared under this system.
To determine which statement is NOT true about the single entry system, let's analyze each option:
Personal, real and nominal accounts are prepared under this system.
This statement is false. The single entry system primarily records only personal accounts, and does not fully account for real and nominal accounts. Therefore, this is the correct answer to the question.
Trading and Profit & Loss A/C cannot be prepared under this system.
This statement is true. In the single entry system, insufficient data is recorded, making it impossible to prepare detailed financial statements such as Trading and Profit & Loss accounts.
Books maintained under this system are not accepted as evidence in the court of law.
This statement is true. The single entry system is not comprehensive and fails to provide reliable and complete financial accountability, which is why such records may not be accepted in legal proceedings.
As compared to the double entry system, this system is arithmetically less accurate.
This statement is true. The single entry system is less accurate than the double entry system because it does not provide a complete and systematic record of business transactions.
Considering these explanations, the statement that is NOT true is: Personal, real and nominal accounts are prepared under this system.
Similar Questions
Which of the following options is the correct rectification entry for the given transaction?
Credit sales of ₹5100 to Jai recorded as credit sales to Jai as ₹1500
Given the information below, what will be the amount of subscriptions in the Receipt & Payment Account and the Income & Expenditure Account, respectively?
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A client pays the firm ARC an amount of ₹12,000 on 28th February to avail services for the next 60 days. ABC uses accrual basis of accounting and closes the books on 31 March. Which account (and what type of account) will be involved as recorded in the balance sheet?
If any capital expenditure is wrongly shown as revenue expenditure (for example, purchase of furniture shown as purchases), it will result in __________ of profits and also an __________ of assets.
Identify the INCORRECT statement:
In the Self Balancing Ledger System, the sales ledger adjustment account is always opened in the:
Which is the National Mission for Financial Inclusion to ensure access to financial services, namely, a basic savings and deposits accounts, remittance, credit, insurance, pension in an affordable manner?
Important Questions from Financial Inclusion
RBI financial inclusion index (FI-Index) quality parameter captures information on which of the following:
A. Financial literacy
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D. Availability and usage
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Choose the correct answer from the options given below:
Which of the following options is the correct rectification entry for the given transaction?
Credit sales of ₹5100 to Jai recorded as credit sales to Jai as ₹1500
Given the information below, what will be the amount of subscriptions in the Receipt & Payment Account and the Income & Expenditure Account, respectively?
A sports club received ₹50,000 as subscriptions during the year 2018-19, of which ₹5,000 relate to the year 2017-18 and ₹10,000 to 2019-20. At the end of the year 2018-19, ₹25,000 are still receivable.
A client pays the firm ARC an amount of ₹12,000 on 28th February to avail services for the next 60 days. ABC uses accrual basis of accounting and closes the books on 31 March. Which account (and what type of account) will be involved as recorded in the balance sheet?
If any capital expenditure is wrongly shown as revenue expenditure (for example, purchase of furniture shown as purchases), it will result in __________ of profits and also an __________ of assets.
