The accounts of non-trading concerns are generally maintained according to:
Mercantile accounting system
Cash accounting system
Double entry book keeping system
Single entry system
The accounts of non-trading concerns are generally maintained according to double entry book keeping system.
In both, single entry system and a double entry system, accounting records are maintained due to a common objective. State the objective.
The accountant of a small firm feels that incomplete records system should not be followed. In spite of that it is easy to maintain accounts on single entry basis. The accountant suggest that double entry accounting system should be followed. Is the suggestion correct? Give reasons.
Books maintained under double entry system are more reliable as compared to when maintained under single entry system. Comment.
Can a limited company maintain its accounts under single entry system ?