Single Entry System

• Under single entry system of Accounting only one aspect of transaction is recorded 

• Single Entry System of Accounting is also known as Incomplete system of Accounting 

• Only cash book and personal accounts are maintained in single Entry System 

• Single Entry System of Accounting followed by Sole traders , Partnership firms , Hindu Undivided Family ( HUF ) 

• Under Single Entry System of Accounting profit and loss account can be ascertained using statement of affairs method 

• Statement of affairs method also known as Conversion method and Capital comparison method 

• The Statement of affairs method is prepared to find out the capital 

• The Total Debtors Account is prepared to ascertain the credit sales and Credit Purchases are ascertain by preparing Credit Account 

• Trail Balance is not prepared under Single Entry System of Accounting