A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 20 - 20 of 93

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Question 20

Question

MCQ▾

Generally accounts under single entry system are maintained

Choices

Choice (4)

a.

Sole Trader

b.

Company

c.

Society

d.

Government

Answer

b.

Explanation

Accounting entries which are not prepared according to the principles of double entry are known as incomplete records. In other words, any accounting records which fall short of complete double entry are called incomplete records. Sometimes, it is also termed as Single Entry System. But it is not proper to describe the system as single entry because in single entry only the personal aspect of a transaction is recorded and the real and nominal aspects are left entirely unrecorded, whereas incomplete records refer to maintaining of only those records which are essential. In other words, under the incomplete records some of the subsidiary books and some ledger accounts are not maintained which otherwise are essential under the double entry system. According to Carter: “Single Entry system is a method or a variety of methods, employed for the recording of transactions, which ignore the two-fold aspect and consequently fails to provide the businessman with the information necessary for him to be able to ascertain the position.”

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