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Question
Write the word / term / phrase which can substitute the following Statement.
The system of accounting which is most scientific and reliable.
Solution
Double entry system
Explanation: Under single-entry system, only cash and personal accounts are maintained. Dual aspect, i.e. double-entry system, is not followed. Hence, single-entry system is considered unscientific and incomplete. On the other hand, double-entry system is considered as a more scientific and complete system of accounting because dual aspect of a transaction (i.e. both debit and credit aspects of a transaction) is recorded. Transactions related to real, personal and nominal accounts are recorded. Hence, it is considered more reliable.
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RELATED QUESTIONS
Under single entry system it is not possible to prepare trial balance.
Write the word / term / phrase which can substitute the following Statement.
A system of book-keeping in which both the aspects of transaction are recorded.
Write the word / term / phrase which can substitute the following Statement.
The method in which Trading Account, Profit and Loss Account and Balance Sheet can be prepared.
Select the most appropriate answer the alternatives given below and rewrite the Sentence.
Under Single Entry System Opening Capital = Opening Assets Less _____________.
State True or False.
All transactions are recorded in Single Entry System.
State True or False.
Arithmetical accuracy can’t be checked in single entry.
State True or False.
Only cash transactions and personal transactions are recorded in Single entry.
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Double Entry System is scientific method of maintaining books of accounts.
State True or False with reasons:
Double Entry System of Book-keeping is scientific method of books of accounts
Fill in the blank:
In _________Book Keeping System, in every business transaction we find two effects.
