Single Entry Ledger - Definition - Meaning - Explanation - Example

The format of Single Entry Ledger is the same as it is used for Double Entry Ledger but from the point view of recording aspects, Single Entry Ledger shows either only one side of a double entry or complete Journal Entry or complete omission of entries. We prepare proper Journal Entries in order to find the mission figures. For Example Net Credit Purchases and Net Credit Sales are calculated by preparing Accounts Receivable Ledger or Accounts Payable Ledger or T-Accounts.

You Can Also Study, "What is Double Entry Ledger In Accounting""

Example: Suppose, Mr. A is a sole trader. He maintains Single Entry System or Bookkeeping. From the accounting records of his business, the Opening Accounts Receivable for the current accounting year, 2017 is Rs. 15000 and Ending Accounts Receivable is Rs. 33000.

                                                          Accounts Receivable Account

 

                                         Rs.                                                                      Rs.

Balance b/d                    15000                              Cash Received            2000

Credit Sales                                                           Sales Returns              1000

(Balance Figure)

                                                                               Balance c/d                 33000

Totals                               36000                             Totals                          36000

In the above example, Accounts Receivable T Account is prepared to find out the Credit Sales (Missing Figure) after collecting the necessary information from the accounting records for the accounting period under single Entry System.