Single Entry Introduction Under Single Entry Accounting System

Single Entry Introduction Under Single Entry Accounting System Two fold effect for each transaction is not given. Hence it is recorded only once in the ledger. Therefore Trial Balance and Profit and loss account cannot be prepared. To know the profit or loss of that year comparison is made with opening capital of that year with closing capital. In this topic we are going to see how to convert Single entry in to Double entry System.

Total Debtors Account • With the help of Total Debtors Account it is possible to find out Credit Sales, Opening/Closing balance of debtors, or cash received from Debtors. • Total Debtors Account Debit Credit

Total creditors account • Debit Total Creditors To Cash To discount To Allowances(received) To returns outwards To Bills Payable(accepted during the year) To Bills Recei(endorsed) To Balance(closing) credit Account By balance By purchases By Bills Payable (Dishnourable)

Total Bills receivable Accounts • Debit credit Bills Receivable To Balance. Total (opening) By. Account Cash To Debtors(Bills Received By Debtors ( bills Dishnoured) during the year) By Creditors(Bills endorsed) By Balance(closing) --------- _---------------

Bills Payable account • Particulars Bills payable Account To cash(paid) By balance(opening) To creditors(B/p dishnoured) By creditors(bills accepted To Balance(closing) during the year) - ---------------------------

How to find missing balances of these accounts? . • The difference between the totals of the two sides of the above accounts indicates the missing items such as credit sales/credit purchases, opening/closing Balance etc.