Chapter 10: Single Entry System
Balbharati solutions for Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board.
Answer in one sentence only.
What do you mean by Single Entry System?
SOLUTION
The system in which cash books and personal accounts of debtors and creditors are maintained and assets and expense/income accounts are not maintained is known as Single Entry System.
What is the Statement of Affairs?
SOLUTION
A statement of assets and liabilities in which the amount of capital is found out by taking the difference between total assets and total liabilities is known as a statement of affairs.
Which types of accounts are normally not kept under the Single Entry System?
SOLUTION
Real and Nominal types of accounts are normally not kept under the single entry system.
Which statement is prepared under the Single Entry system to ascertain the capital balances?
SOLUTION
Statement of affairs is prepared under the single entry system to ascertain the capital balances.
How Opening Capital is calculated under the Single Entry System?
SOLUTION
In a statement of affairs, when the total of the assets side is greater than the total of liabilities side, then the difference of amount is known as ‘Opening Capital’.
Which type of accounts are maintained under Single Entry System?
SOLUTION
Under the Single Entry System, cash books and personal accounts of debtors and creditors are maintained.
Can a Trial Balance be prepared under the Single Entry System?
SOLUTION
Trial Balance cannot be prepared under Single Entry System.
Which type of organization generally follows the Single Entry System?
SOLUTION
A small business organization with limited number of transactions and very few assets and liabilities generally follows the Single Entry System.
Write a word, term, or phrase which can substitute the following statement.
A statement which is similar to Balance Sheet.
SOLUTION
Statement of affairs
System of Accounting normally suitable for small business organization.
SOLUTION
Single Entry System
A statement similar to Balance Sheet prepared to find out the amount of opening capital
SOLUTION
Opening statement of affairs
An excess of assets over liabilities.
SOLUTION
Capital
Excess of closing capital over opening capital of proprietor under Single Entry System.
SOLUTION
Profit
Name of method of accounting suitable to firms to have limited transactions.
SOLUTION
Single entry system
A System of accounting which is unscientific.
SOLUTION
Single entry system
Further capital introduced by the proprietor in the business concern over and above his existing capital.
SOLUTION
Additional capital
Select the most appropriate answer from the alternatives given below and rewrite the sentence.
The capital balances are ascertained by preparing ________
Options
Statement of affairs
Cash Account
Drawings Accounts
Debtors Accounts
SOLUTION
The capital balances are ascertained by preparing Statement of Affairs.
Under Single Entry System Opening Capital = Opening Assets Less _____________.
Options
Closing Assets
Opening Liabilities
Opening Assets
Closing Liabilities
SOLUTION
Under Single Entry System Opening Capital = Opening Assets Less Opening Liabilities.
Explanation: Opening Capital is calculated by deducting the total opening liabilities from the total opening assets.
Additional Capital introduced during the year is __________ from closing capital in order to find out the correct profit
Options
Added
Deducted
Divided
Ignored
SOLUTION
Additional Capital introduced during the year is deducted from closing capital in order to find out the correct profit.
Single Entry System may be useful for ________.
Options
Sole traders
Company
Government
None of these
SOLUTION
Single Entry System may be useful for sole traders.
In order to find out the correct profit, drawings is __________ from closing capital
Options
Multiplies
Divided
Deducted
Added
SOLUTION
In order to find out the correct profit, drawings is to added closing capital.
The difference between assets and liabilities is called ____________.
Options
Capital
Drawings
Income
Expenses
SOLUTION
The difference between assets and liabilities is called Capital.
When Closing Capital is greater than the Opening Capital, the difference is ____________.
Options
Profit
Loss
Assets
Liabilities
SOLUTION
When Closing Capital is greater than the Opening Capital, the difference is Profit.
Opening Capital is ₹ 30,000; Closing Capital is ₹ 60,000; Withdrawals are ₹ 5,000; and further capital brought in is ₹ 3,000; Profit is _______.
Options
₹ 45,000
₹ 35,000
₹ 32,000
₹ 22,000
SOLUTION
Opening Capital is ₹ 30,000; Closing Capital is ₹ 60,000; Withdrawals are ₹ 5,000 and further capital brought in is ₹ 3,000; .Profit is = ₹ 32,000
State True or False with reasons:
Double Entry System of Book-keeping is scientific method of books of accounts
Options
True
False
SOLUTION
This statement is True.
In the Double Entry System, for every monetary transaction, at least two effects are to be passed and every type of accounts are to be considered for preparing books of accounts. Therefore, Double Entry System of bookkeeping is the scientific method of books of accounts.
Preparation of Trial Balance is not possible under Single Entry System
Options
True
False
SOLUTION
This statement is True.
In the Trial Balance we require a ledger balance of every account from business transactions which is not possible in the Single Entry System. Therefore, the preparation of Trial Balance is not possible under a single Entry system.
Statement of Affairs and Balance Sheet are one and the same.
Options
True
False
SOLUTION
This statement is True.
A statement of affairs is a statement of assets and liabilities. In a statement of affairs, right hand side is used for recording assets and the left side is used for recording liabilities. Therefore, we can say that statements of affairs and balance sheet are one and the same.
Single Entry System is not useful for large organizations.
Options
True
False
SOLUTION
This statement is True.
In a Single Entry System, cash book and personal accounts of debtors and creditors are maintained and real and nominal accounts are not maintained. In a large organization it is necessary to maintain every type of accounts. Therefore Single Entry System is not useful for large organization.
Only Cash and Personal accounts are maintained under Single Entry System.
Options
True
False
SOLUTION
This statement is True.
In the small organization where the number of business transactions are limited and they have very few assets and liabilities and also they do not want to bear the expenses for the accounting system. Therefore, they prefer the Single Entry System in which only cash and personal accounts are maintained.
Do you agree with the following statement?
Further capital introduced during the year increases profit.
Agree
Disagree
Interest on Drawings decreases the amount of profit under Single Entry System.
Agree
Disagree
Real and Nominal accounts are not maintained under Single Entry System.
Agree
Disagree
Single Entry System is based on certain rules and principles
Agree
Disagree
Statement of Profit is just like Profit and Loss Account.
Agree
Disagree
Fill in the blank:
Statement of Affairs is just like a ______________.
SOLUTION
Statement of Affairs is just like a balance sheet.
In order to find out the correct profit, drawings are __________ to the closing capital.
SOLUTION
In order to find out the correct profit, drawings are added to the closing capital.
In _________Book Keeping System, in every business transaction we find two effects.
SOLUTION
In double entry Book Keeping System, in every business transaction we find two effects.
The difference between Assets and Liabilities is called _______.
SOLUTION
The difference between Assets and Liabilities is called capital.
Single Entry System is more popular for __________.
SOLUTION
Single Entry System is more popular for small/sole traders.
Additional Capital introduced during the year is __________ from Closing Capital in order to find out the correct profit.
SOLUTION
Additional Capital introduced during the year is deducted from Closing Capital in order to find out the correct profit.
Single Entity System is suitable for ________business.
SOLUTION
Single Entity System is suitable for small business.
Find the odd one :
Interest on Drawings
Outstanding Expenses
Undervaluation of Assets
Prepaid Expenses
Interest on Capital
Interest on Loan
Overvaluation of Liabilities
Depreciation on Assets
Creditors
Bills Payable
Bank Overdraft
Stock in Trade
Balbharati solutions for Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board chapter 10 - Single Entry System
Balbharati Solutions for Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board Chapterwise List - Free
Chapter 1: Introduction to Book - Keeping and Accountancy
Chapter 2: Meaning and Fundamentals of Double Entry Book-Keeping
Chapter 6: Bank Reconciliation Statement
Chapter 8: Rectification of Errors
Chapter 9: Final Accounts of a Proprietary Concern
Chapter 10: Single Entry System
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Concepts covered in Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board chapter 10 Single Entry System are Single Entry System, Difference Between Single Entry System and Double Entry System, Preparation of Opening and Closing Statement of Affairs, Preparation of Statement of Profit Or Loss, Additional Information (Adjustments).
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