Single entry is an incomplete method of accounting; its limitations are no trial balance, inaccurate profit and position, poor fraud detection and unsuitability for large concerns. For the given data, total purchases = Rs. 67,700.

Single-Entry System (meaning): it is an incomplete and unscientific method of recording transactions in which the dual aspect of every transaction is not recorded. Generally only the Cash Book and personal accounts (debtors and creditors) are maintained; real and nominal accounts are ignored.

Limitations of the Single-Entry System:

1. No Trial Balance — since both aspects are not recorded, a trial balance cannot be prepared and arithmetical accuracy cannot be checked.
2. True profit not known — in the absence of full nominal accounts, profit/loss can only be estimated (net-worth method), not accurately ascertained.
3. Financial position unclear — a reliable Balance Sheet cannot be drawn up because complete records of assets and liabilities are missing.
4. Frauds and errors hard to detect — the lack of cross-checking makes it easy for errors and frauds to go unnoticed.
5. Unsuitable for large concerns — companies are legally barred from using it; it suits only small sole proprietors.

Or — Ascertainment of Total Purchase. First find bills accepted during the year, then credit purchases, then add cash purchases.

Bills Payable Account:

Total Creditors Account:

| Dr. | Rs. | Cr. | Rs. |

|---|---|---|---| …