Single Entry System Conversion Method - Definition - Meaning
Co nversion method is the process of changing the preparation method of B ooks of Accounts from Single Entry System to Double Entry System . Under Single Entry System, only Cash Book , individual accounts, statement of affairs are prepared but under double entry system, we prepare Trial Balance , Trading & Profit And Loss Account or Income Statement and B alance Sheet with the the help of b ooks of accou nts. Steps To Convert books of accounts into Double Entry System of B ookkeeping Following steps are taken to convert single entry system into double entry system: 1. Firstly, we prepare statement of affairs at the beginning of the period 2. All the accounts except Accounts Receivable / Debtors , Accounts Payable / Creditors , Cash & B ank accounts appear in the statement of affairs must be debited or credited in the relevant ledger accounts. 3. From cash book, posting to impersonal accounts i.e., Cash Purchases, Cas...