What do you understand by single entry system(November 96) or
What is single entry book keeping(April 97) or
What is meant by single entry system of book keeping(November 99) or
What is single entry system of book keeping(April 2000)
Single Entry System is a method of maintaining accounts without strictly following the principles of double entry. It is a haphazard way of writing some entries and excluding some others. Since all transactions are not accounted for scientifically and completely, the method is known as unscientific and incomplete records.
According to Carter, Single Entry System is "a method or variety of methods employed for recording some transactions which ignore the two-fold aspect and consequently fails to provide the businessmen with the information necessary for him to be able to ascertain the position."

State under what circumstances accounts opened in the debtors ledger show credit balance(November 97)
Credit balance may appear in Debtors Account under the following circumstances:
(a) Due to advance payments made by such debtors before execution of their order.
(b) Return of goods by them after settlement of their accounts or excess payments made by them.

Detail the main object of converting the books of accounts from single entry to double entry(November 97)
1. To record both the aspects of the transaction i.e. debit and credit.
2. To record real, personal and nominal account.
3. For a scientific record of business transactions.
4. To prepare Trading and Profit and Loss Account and the Balance Sheet.
5. To prepare a Trail Balance.

State 2 de-merits of single entry system(April 98)
1. It is not a scientific method of accounting because it does not record the two-fold aspect of each transaction.
2. No trail balance can be prepared as it does not record the dual aspect of each transaction, so the arithmetical accuracy of the books cannot be checked.
3. The results of trading obtained under single entry system are incomplete since many items are based on the proprietor's memory.
4. Profit and Loss Account cannot be prepared since Nominal and Real Accounts are not recorded separately.
5. There is no provision for checks and counter-checks and hence frauds are easily committed.

Income Tax paid is closed by transferring to which account(November 99)
Capital Account - Income tax paid is treated as drawings in single entry system.

Write 2 advantages of single entry(April 99) or
Mention any 2 merits of single entry system(November 2000)
1. It is economical, therefore useful to petty traders and small firms.
2. Persons not having proper knowledge of double entry system can conveniently make use of this system.
3. It is useful in unforeseen events.
4. The system is quite useful in finding out the position of the business in the event of loss of property, stock, books of accounts, etc.

Calculate the missing figure
Opening Capital ?
Closing Capital Rs. 36,400
Capital Introduced Rs. 9,400
Drawings Rs. 5,600
Loss Rs. 2,800
(April 99)

(Opening Capital = 36,400 - 9,400 + 2,800 + 5,600)

Calculate Sales; if Opening Debtors - Rs. 10,000; Cash Received From Debtors & B/R - Rs. 20,000; Opening Balance of B/R - Rs. 4,000 and Closing Balance of B/R - Rs. 2,000; Closing Balance of Debtors - Rs. 16,000(April 99)

Write the journal entry for bills receivable dishonoured(November 99)
Debtors A/c Dr
To B/R A/c
(Being bills receivable dishonoured)

Bring out any 2 differences between a balance sheet and a statement of affairs(April 2000, November 2002)
1. In the case of Balance Sheet, it is prepared under double entry system whereas Statement of Affairs is prepared under single entry system.
2. The purpose of preparing the Balance Sheet is to show the financial position of the business whereas a Statement of Affairs is prepared to ascertain the capital(opening or closing).
3. Statement of Affairs is prepared from the incomplete records, partly with the help of assumptions, estimates, memory, and physical inspection of assets whereas Balance Sheet is prepared with the help of properly maintained ledger accounts(under double entry system).
4. The financial position as shown by this Statement of Affairs is not reliable. The financial position as shown by the Balance Sheet is reliable under double entry system.

Mention 2 salient features of Single Entry System?
1. The cash book maintained under this system contains not only the business transactions but also the private transactions. No distinction is made between business and private transactions.
2. Generally, Personal Accounts are maintained but not the Real and Nominal Accounts. Therefore, it is a record of an incomplete and disjointed information.
3. It is a system which lacks uniformity because it is double entry twisted to the convenience of the person concerned. No hard and fast rules are followed for recording business transactions.

Give 2 differences between single entry system and double entry system?
1. Under single entry system, both the aspects of every transactions are not always recorded. On the other hand, under double entry system a complete and detailed record of every transaction is made taking into account both debit and credit aspects.
2. [As a result of (1)] It is not possible to test the arithmetical accuracy of the accounts under single entry system. However it is possible to test the arithmetical accuracy of accounts under double entry system by preparing the trail balance.