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Question
Write the word / term / phrase which can substitute the following Statement.
System of accounting normally suitable to small business organization.
Solution
Single entry system
Explanation: Generally, small businesses lack the required experience in recording transactions in a scientific and systematic manner. Allocation of funds for maintenance of complete accounting records is difficult for them. So, it is desirable for them to maintain incomplete records and ascertain the profit or loss. This is known as single-entry system and is particularly suitable for small-scale business organisations that have small number of transactions.
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A system of accounting which is not scientific.
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Under Single entry System only _______________.
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