Under Single Entry System, Bills Payable received are recorded on the alu?
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Subject:
Accountancy -
Author:
jerónimo -
Created:
1 year ago
Answers 1
Answer:
A single entry system of bookkeeping is where the transactions of the business affect only one account, i.e. only one account’s value will decrease or increase based on the transaction amount. Under this system, a cash book is prepared that shows the payment and receipts of the cash transactions.
Under the single entry system of bookkeeping, the cash book and personal accounts of creditors and debtors are maintained, and no other ledger is maintained. Every transaction of the business is recorded in the cash book without applying the principles of the double-entry system of bookkeeping. The nominal accounts and real accounts are not recognised under this system.
Under this system, the records related to taxes paid, account payable, cash, receivables and few other accounts are maintained. Usually, small businesses prefer the single-entry bookkeeping system as it is easy to maintain and has minimum requirements.
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