AJoint Stock Companies
BSmall firms, sole traders, partnerships, and HUF
CMultinational corporations
DGovernment organizations
Answer:
B. Small firms, sole traders, partnerships, and HUF
Read Explanation:
SYSTEM OF BOOK KEEPING
THE SINGLE ENTRY SYSTEM
Is a system of Recording Transactions on the books of accounts
Incomplete system
Not based on double entry system.
Only one aspect of transaction is recorded.
It is very simple and it can be operated without any accounting knowledge.
Only Cash Book and Personal Account are maintained.
Does not maintain a full system of Accounting.
Trial Balance cannot be prepared.
Trading and P and L account cannot be prepared from single entry accounts.
Followed by Small firms, sole traders, partnership firms, HUF etc.
Not Followed by Joint Stock Companies.
Unsystematic and incomplete of Accounting.
The profit is calculated by comparing Capital in the beginning and at the end of the period
Statement Of Affairs Methods is also known as Capital Comparison Method.
Total Debtors Account is prepared to find the Credit sales.
Creditors Account is Prepared to find out Credit In this system the Profit and Loss Account is prepared to find out using Statement of Affairs Method.(Conversion Method)
The statement of Affairs Method is prepared to find out the Capital.
Defect- unscientific method
Ignored Nominal, Real Account