What Is An Account

                                             An Account

In business concerns, numerous transactions take place every day. For example, goods are sold to various customers every day, purchases are made from suppliers, cash is paid to creditors and is recieve from debtors, expences are paid etc. All these transactions should be properly analysed and recorded. Again, the concept of double change in a business transaction should be keep in mind. To record these changes different accounts are maintained in the ledger.

Now what is an account?

              "Accountis the individual record of an asset,
                 a liability, a revenue, an expence or capital 
                                in a summriesd manner."
For example:
        The individual record of cash (an asset) is known as cash account, the indvidual record of purchases is Purchases Account, the indvidual record of capital is Capital Account, the indvidual record of sales is Sales Account.

Ledger accounts:

In the same way there are so many accounts which are opned in the ledger like Salary Account, Machinery Account, Furniture Account, etc. How many accounts there should be in ledger of a business? It depends upon the nature and the                                                         size of the business.

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Single Entry System

                                     Single Entry System

From the very name of the system it aparently seems that a system in which only one aspect of a transaction is  recorded , is called single entry system.But in fact it is not so. This system does not observe any systematic rule. Under this system, some transactions are recorded on both sides like Double Entry System, some are recorded on one side only, while some other are not recorded at all. According to Arthur Fieldhouse, "Single Entry is faulty, incomplete, inaccurate, unscientific and un systematic style of  account-Keeping".

Single Entry is a misnomer. So it is very difficult to give a propper definition of the system:

               "Single Entry is that which is not a Double Entry ".

                   "A system is nothing but a mixture of Double

                            Entry, Single Entry and No Entry".

• For some transactions both the ascepts are recorded, while for some other only one ascept is concidered. Again , some transactions are not recorded at all. Thus, complete analysis of a transaction is not always possible.
• Only cash a/c and Personal Accounts are maintained.
• Mistakes and defalcations cannot be detected easily.
• There is no rules here as such.

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