SINGLE ENTRY

Prepared by:

CHRISTIAN JOHN P. FORMARAN, CPA, MBA

Dean, College of Business Administration & Accountancy
Discussion Proper
SINGLE ENTRY

DOUBLE ENTRY SYSTEM

VS.
SINGLE ENTRY SYSTEM.
SINGLE ENTRY

When is this used?

 Incomplete records or what you call “Bare

Essentials”
 Cash book, AR and AP Book, PPE book and
Taxes paid
 Major book is the Cash receipts and Cash
disbursement book
SINGLE ENTRY

 Cash Book - description of transactions

 AP and AR book – list of customers and
suppliers with corresponding balances
SINGLE ENTRY

Common Accounting Problems

 Single entry method of determining the net

income or net loss
 Preparation of income statement
 Preparation of statement of financial position
SINGLE ENTRY METHOD

For Corporation
Retained earnings, ending………xx
Add: Dividends declared/paid…..xx
Other Items that (-) R/E but
not P/L……………………..…xx
Less: R/E, beginning
Other Items that (+) R/E but
not P/L……………………..…xx
Net Income or Net loss……..…….xx
PPE COMPUTATION
T-ACCOUNT APPROACH
Guidelines (Steps) in using the T-Account Approach:

STEP 1
Plot the given data in the T-account.

STEP 2
To facilitate computation, the beginning balance is placed in the
normal balance of an account and the ending balance will be at the
other side of its normal balance

Ex. The normal balance of the AR is debit so the beg. balance will be place
d at the debit side while the ending balance will be placed at the credit
side.
T-ACCOUNT APPROACH

Guidelines (Steps) in using the T-Account Approach:

STEP 3
Compute the total debit and the total credit.

STEP 4
The difference between the total debit and the total credit is the squeezed
figure.
T-ACCOUNT APPROACH
PROPERTY, PLANT AND EQUIPMENT

Carrying amount- beg xx Carrying amount - end xx

Acquisition xx CA of PPE sold xx

Depreciation expense xx
SAMPLE PROBLEMS
END
QUIZ