Conversion into Double Entry System
Conversion into Double Entry System requires because single entry accounting can only be used for extremely simple businesses. Double entry accounting debits an account and credits a different account every time there is a transaction. It is much better and reliable .
Learning Objectives: Define and explain single entry system. What are the limitations of single entry system. How profit is calculated under single entry system of accounting. Definition and Explanation of Single Entry System: It is difficult to define single entry system because, in fact,
Conversion into Double Entry System: Learning Objectives: Define and explain conversion method. How trading and profit and loss account and balance sheet is prepared under conversion method. Conversion of books from single entry system to double entry system is possible either with retrospective (i.e.,