1.State the meaning of single -entry system.

Any system of accounting which is not a complet double-entry system is called single-entry system of acconting .In other words,any accounting system.which does not contain acomplete record of each and every transaction is called single-entry system.

  1. State the two methods of ascertating profits or losses under the single -entry system.

The two methods of asacertaining profits or losses under the single entry system are (1)Statementof Affairs Method,Capital Comparison Method orNet Worth Method and (2)Conversation Method or Trading and profit and Loss Account Method.

  1. What is statement of affairs?

A state ment of affairs ,like a balance sheet ,is a statement which sets out the estimated values of assets and libilities of a concern as on a given date.It is  prepared undr the single -entry system.

  1. What is a state of profit or loss?

a statement of profit or loss is a statement  prepared umder the single-entry system to ascertain the profit or loss of a bussiness concern for a year.The profit or loss shown by a statement of profit or loss is not quit correct or reliable.

  1. Give the meaning of pure single -entry system.

pure single entry system is sysrem under which no subsidiary book is maintained. Only a ledger  ,containing only the personal accounts of trade debtors and tread creditors,is maintained.

  1. state how profit is ascertained under net worth methoed.

Under net worth method ,the profit or loss is ascertained by comparing the capital at the end of the trading period with the capital at the beginning  nof the trading .If the closing  capital  the differece is treated as profit.On the otherv hand ,if the closing capital the difference is treated as loss.

  1. What is conversion method of single entry system?

Conversionof single-entry system into double entry system is a process of of complete  the incomplete accounting  records existing undr the single-entry system into complete double -entry accounting system by making the required adjusments and making the accoundting system suitable for the preparation of complete final accounts.i,e., trading and profit and loss account and balance sheet,as under the double-entry system of accounting .The adjustments required for the conversationdepend upon the degree of incompletenessof accounting records exising under the single-entry system.