Page 1 - MIND MAP - SINGLE ENTRY SYSTEM-11 - Copy_rotated (2) (1)
P. 1

•  Statement of affairs method                                                                  When accounting records are not maintained
            •  Conversion method or Final                                                                   according to double entry principals it is
             Accounts Method                                                                                usually referred as incomplete records








                                                               Accounts from                            •  Not preferred as per the Double Entry System
                                                                                                        •  Complete record of transactions is not available
                                                            Incomplete Records                          •  Only Personal Accounts are maintained









            •  Net Credit Sale = Total Sales – Cash Sales – Sales Return
            •  Net Sales = Cash Sales + Credit Sales – Sales return                                          •  Lack of arithmetic accuracy
            •  Cost of goods sold = Opening Stock + Net Purchase                                             •  True profit or loss cannot be ascertained
                              + Direct Exp – Closing stock                                                   •  Does not reveal true financial position of
            •  Gross profit = Net sales – Coast of goods sold                                                  the business










                                                                                                                                                    11
   1