Single Entry True/False Quiz

A Trial Balance cannot be drawn up from books kept under Single Entry

• True

• False

Answer explanation

True. A Trial Balance requires double-entry bookkeeping to ensure that debits equal credits. Single Entry systems do not provide complete records for all accounts, making it impossible to prepare a Trial Balance.

Only Personal Accounts are maintained under Quasi Single Entry

• True

• False

Answer explanation

The statement is false because Quasi Single Entry systems can maintain Personal Accounts, Cash Book & some Subsidiary books

All Nominal Accounts are maintained under Single entry System

• True

• False

Answer explanation

The statement is false because nominal accounts, which include income and expense accounts, are typically maintained under the double entry system, not the single entry system.

Only Cash Book & some Personal Accounts are maintained under Simple Single Entry

• True

• False

Answer explanation

The statement is true because under Simple Single Entry, only a Cash Book and some Personal Accounts are maintained.

In Statement of Affairs most of the Assets are recorded based on Estimates, Assumptions, informations gathered from memory rather from the records

• True

• False

Answer explanation

True. In a Statement of Affairs, many assets are indeed recorded based on estimates and assumptions rather than precise records, reflecting a reliance on memory and subjective judgment.

If opening balance & Closing balance of Creditors A/c is known & also the details of Payment made & Discount received We can get Cash as well as Credit Purchases as the balancing figure

• True

• False

Answer explanation

The statement is false because knowing the opening and closing balances of the Creditors A/c, along with payments and discounts, can lead us to get only Credit Purchases.

Under the Single Entry System, it is possible to prepare a Profit and Loss Account directly from the records.

• True

• False

Single Entry System can be adopted by Small Firms

• True

• False

Closing Capital can be calculated as Opening Capital + Additional Capital - Drawings + Loss

• True

• False

Profits computed under Single entry system by different business entities are not comparable

• True

• False