give any three advantages of single entry system of accounting?
Dear Student, a single entry system is maintained by a sole trader having less transactions and whose work is to maintain only few accounts. Following are some of the advantages of adopting single entry system:
1) Simple Method: It is simple to record transactions as only few accounts are maintained by the owner.
2) Economical: There is no need to spend huge sum for making accounts checked by Chartered Accountant, one can maintain his books himself.
3) Suitable for small business: This method is suitable where less transactions are needed to be recorded.
4) No Expert knowledge required: For keeping accounts on single entry system, one does not require expert knowledge.
5) Easy to ascertain profit or loss: Profit or loss can be ascertained by simply comparing the assets and liabilities in the beginning with the closing balances of assets and liabilities.
Hope this answers your query, if you have any further doubts, do let us know !!
1) Simple Method: It is simple to record transactions as only few accounts are maintained by the owner.
2) Economical: There is no need to spend huge sum for making accounts checked by Chartered Accountant, one can maintain his books himself.
3) Suitable for small business: This method is suitable where less transactions are needed to be recorded.
4) No Expert knowledge required: For keeping accounts on single entry system, one does not require expert knowledge.
5) Easy to ascertain profit or loss: Profit or loss can be ascertained by simply comparing the assets and liabilities in the beginning with the closing balances of assets and liabilities.
Hope this answers your query, if you have any further doubts, do let us know !!