SINGLE ENTRY

SYSTEM
Double Entry System
SUMMA DE ARITHMETICA,
GEOMETRIA, PROPORTIONI
ET PROPORTIONALITA
- LUCAS PACIOLI
WHAT IS
SINGLE
ENTRY
SYSTEM?
 A system of record
keeping in which
transactions are not It where the records are
analyzed and recorded in incomplete.
the double entry
framework.
 Information as
Cashbook to fixed assets THE
acquired
PROPRIETO
R
List of
NORMALLY
List of
customers
supplier and
figures which
MAINTAINS
with open
the entity is
accounts
liable to pay
SINGLE ENTRY CASH V.
 ACCRUAL
Determination of income

COMMON
Preparation of income statement PROBLEMS
INVOLVE…

Preparation of balance sheet

PRACTICE
PROBLEMS
PROBLEM #1
 Cylle Company started his business some years ago. As of the beginning of the year, the
capital account of Cylle Company had a P1,000,000 balance. During the current year, he made
additional investments amounting to P300,000. His total assets increased by P2,000,000. It’s
year-end liability last year was P650,000.

 At the end of the current year, Cylle made a withdrawal amounting to P150,000. And it’s
liability doubled from the beginning of the year.
 How much was the income or loss during the year?
PROBLEM #2
 Daniel Company started his business at the beginning of the year. He maintains incomplete
records. He started with a cash investment of P1,000,000. The entity used the cash investment
to buy some machineries to manufacture its product and a service vehicle to deliver its
product. Its remaining cash was used to buy supplies and to fund the working capital.

 During the year, the entity earned P500,000 through cash sales and sales on account. Further,
it incurred expenses (including interest) amounting to P345,000. The proprietor used
P150,000 worth of merchandise from the entity for its own consumption. Further to expand its
business, the entity obtain a loan from Banko de Bankrap amounting to P750,000, half of
which was paid by the end of the year.

 How much total assets should be reported by the end of the year?
PROBLEM #3
The following increase (decrease) of account balances were taken from the incomplete records
of Kreezia Corp.
Cash P500,000
Notes Receivable (100,000)
Inventories 300,000
PPE 200,000
Accounts Payable (200,000)
Notes Payable 300,000

During the year, the entity issued additional 1,000 shares at par value for P100 each. The entity
later declared P25 dividend for each share withheld.

Determine the Net Income of Kreezia Corp?

PROBLEM #4
The following increases (decreases) were taken from Lethylle Corporation’s incomplete accounting
records.
Assets (800,000)
Liabilities (500,000)
Share Capital 1,000,000
Share Premium 500,000

There were no other share capital transaction other than the declaration of dividends amounting to
P700,000.

How much was the net income/ net loss of Lethylle for the current year?