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Accountancy · Class 12 Commerce

Ch 10Accounts from Incomplete Records (Single Entry System) — Class 12 Accountancy, concept-first.

Most genuinely small businesses — a single trader running a shop, a small family partnership, a village trader — do not maintain a complete set of books following the strict rules of double entry bookkeeping.

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Key concepts

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Single Entry System

The Single Entry System (more accurately, Accounts from Incomplete Records) is an informal, unscientific way small traders and partnerships keep their books — typically only personal accounts (debtors, creditors) and a c…

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Chapter contents

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1

Meaning and Features of Single Entry System

Most genuinely small businesses — a single trader running a shop, a small family partnership, a village trader — do not maintain a complete set of books following the strict rules of double entry book…

2

Types and Limitations of Single Entry System

Depending on exactly how much a trader actually records, the Single Entry System is traditionally described under three broad types:

3

Statement of Affairs Method — Ascertaining Profit

Since a trader keeping incomplete records has no full ledger, the profit for a period cannot be worked out directly from a Trading and Profit and Loss Account the way it would be under double entry bo…

4

Adjustments in Ascertaining Profit under the Net Worth Method

The basic formula in Section 3 gives only a rough, unadjusted profit figure. In practice, examiners almost always add further information that must be worked into the computation before the final, cor…

5

Conversion Method — Ascertaining Missing Figures

The Statement of Affairs Method only estimates the OVERALL profit for a period, through a net-worth comparison — it does not reveal how that profit was actually earned, since there is no Trading Accou…

Exercises

+Show 6 questions6 questions
  1. Q1What is meant by the Single Entry System of Accounting? State any four of its features.Free
  2. Q2State any four limitations of the Single Entry System of Accounting.Free
  3. Q5A trader's position was as follows. On 1 April 2024: Cash ₹4,000; Stock ₹12,000; Debtors ₹9,000; Machinery ₹8,000; Creditors ₹7,000. On 31 M…Preview
  4. Q8From the following particulars, find out the amount of Cash received from debtors during the year: Debtors on 1 April 2024 ₹20,000; Credit S…Preview
  5. Q9Distinguish between a Statement of Affairs and a Balance Sheet.Preview
  6. Q10The Statement of Affairs Method of ascertaining profit under the Single Entry System is also known as: (a) Conversion Method (b) Net Worth M…Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 9 questions9 questions
  1. Q1Mr. X keeps book in the single entry system. Find the profit from the following particulars : | Particulars | Amount | | --- | --- | | Capit…Preview
  2. Q2What is meant by single entry system ?Preview
  3. Q3Following Information given below prepare this statement of profit or loss. (a) Excess of assets over liabilities as on 31-12-2017 — ₹ 30,00…Preview
  4. Q4Define accounts from Incomplete Records.Preview
  5. Q5Find out the Profit or Loss from the following data : | Particulars | Amount | | --- | --- | | Capital at the beginning of the year | ₹ 50,0…Preview
  6. Q6Write two disadvantages of Single Entry Book-Keeping.Preview
  7. Q7Define accounts from Incomplete Records.Preview
  8. Q8Mr. Gopal maintains his books on single entry method he gives the following information. | Particulars | Amount | | --- | --- | | Capital on…Preview
  9. Q9From the following find the profit earned by a trader Capital at the beginning of the year ₹ 7,500 Capital at the end of the year ₹ 10,000Preview

More questions

+Show 5 questions5 questions
  1. Q3A trader keeping incomplete records had the following position on 1 April 2024: Cash ₹5,000; Stock ₹20,000; Debtors ₹15,000; Furniture ₹10,0…Free
  2. Q4From the following particulars of a trader, ascertain the Net Profit for the year ended 31 March 2025. Statement of Affairs as on 1 April 20…Free
  3. Q6From the following, find the Credit Sales and the Total Sales for the year: Debtors on 1 April 2024 ₹15,000; Cash received from debtors duri…Preview
  4. Q7From the following, find the Credit Purchases and the Total Purchases for the year: Creditors on 1 April 2024 ₹12,000; Cash paid to creditor…Preview
  5. Q11A trader's Statement of Affairs as on 1 April 2024 showed: Cash ₹5,000; Stock ₹18,000; Debtors ₹14,000; Furniture ₹9,000; Creditors ₹10,000.…Preview