ACCOUNTS FROM INCOMPLETE RECORDS

OR

SINGLE-ENTRY BOOKKEEPING SYSTEMS:

Single-entry bookkeeping system means any accounting records which

do not contain a complete record (i.e. a record of both the debit and credit
aspects) of each and every transaction.

Single-entry bookkeeping system also known as Single-entry

accounting system is a method of bookkeeping relying on a one sided
accounting entry to maintain financial information.

FEATURES OF SINGLE-ENTRY SYSTEM:

1. Incompleteness of accounting records is the most important feature of

the single-entry system.

2. Under this system, no hard and fast rules are observed for recording
business transaction.

3. There is no uniformity under this system as regards the recording of

business transactions.

4. Under this system, all accounts are not maintained.

5. The cash book, maintained under this system, usually, mixes up the
business transaction as well the private transaction of the proprietor.

6. As a complete record of each and every transaction is not maintained

under this system, this system gives only partial information, not full
information of the business.
 7. As the full information about the business is not given by this system,
this system is an incomplete, unscientific, unsatisfactory and unreliable
system of bookkeeping.

8. It is a simple and economical system of bookkeeping, as it needs less

number of books of account.

9. It is, usually, adopted by small business concern like sole trader and
partnership firms whose volume of business and financial resources do
not warrant the elaborate and costly double-entry system.

ADVANTAGES SINGLE-ENTRY SYSTEM:

1. This system is easy to understand.

2. It is a simple method of recording business transactions, because an

elaborate accounting procedure is not involved in this system.

3. It is less costly when compared the double-entry system because fewer

books of account are maintained under this system.

4. As this system is simple and less costly, it is suitable for small

concerns.

DISADVANTAGES SINGLE-ENTRY SYSTEM:

1. Data may not be available to management for effectively planning

and controlling the business.
2. Lack of systematic and precise bookkeeping may lead to inefficient
administration and reduced control over the affairs of the business.
3. Single-entry records do not provide a check against clerical error,
as does a double-entry system. This is one of the most serious
defects of single-entry systems.
 4. Single-entry records seldom make provision for recording all
transactions. In addition, many internal transactions, such
as adjusting entries are often not recorded.
5. Because no accounts are provided for many of the items appearing
in both the Income Statement and Balance Sheet, omission of
important data is possible.
6. In the absence of detailed records of all assets, lax administration
of those assets may occur.
7. Theft and other losses are less likely to be detected.

TYPES OF SINGLE-ENTRY SYSTEM:

1.Pure Single-Entry System

2.Simple Single-Entry System

3.Quasi Single-Entry System

Pure Single-Entry System: is a system under which no

subsidiary books are maintained. Only a ledger, containing only the personal
accounts of debtors and creditors is kept.

Simple Single-Entry System: is a system under which a

subsidiary book, viz., the cash book, and ledger, containing only the personal
accounts of debtors and creditors are maintained.

Quasi Single-Entry System: is a system under which more than

one subsidiary book (usually, the cash book, the purchase book, the sales
book, the purchases returns book and the sales returns book) and ledger are
maintained.