A statement of book-keeping which records only one aspect of business transactions and ignores other aspects is known as ________________.

Double Entry System

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Single Entry System

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Final Accounts

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Partnership Accounts

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Solution

The correct option is B Single Entry System
Profit or loss earned by the business under single entry system is based on the difference between its Opening and closing capital.
Hence, such capitals are a result of Statement of affairs which is based on an equation Capital = Assets - Liabilities.
Hence, basic accounting aspects of debit and credit are not followed.

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Similar questions

Q. ______ concept is based on double entry book-keeping which means that accounting system is set up in such a way that a record is made of the two aspects of each transaction that affects the records.

Q. A system of book-keeping in which both the aspects of transaction are recorded is ______________.

Q. Under double entry system both aspects of transaction are recorded, while Under single entry system, both aspects of transaction are not recorded.

State whether the following statements are true or false:

(1) A journal voucher is must for all transactions recorded in the journal.
(2) Journal is a book of secondary entry.
(3) Narration is not necessary for each and every journal entry.
(4) Every transaction is recorded first in the journal.
(5) Live Stock A/c is a Nominal A/c.
(6) Bank of Maharashtra A/c is a Nominal A/c.
(7) Brokerage paid on sale of goods is debited to brokerage A/c.
(8) If the goods are sold the entry should be recorded in the journal.
(9) Goods withdrawn by the proprietor from business is debited to the Drawing A/c.
(10) Cash discount does not appear in the books of accounts.
(11) If rent is paid to the landlord, landlord’s A/c should be debited.
(12) Book keeping records monetary transactions only.
(13) Drawings made by the proprietor increases his capital.
(14) Premium paid on the life policy of the proprietor should be debited to insurance premium account.

Q. A concept on which double entry book keeping system is based is ___________.

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