Books Maintained Under Single Entry 📖
Even though it's incomplete, the trader maintains a few essential books.
1. Cash Book 💰
- This is the most important book.
- Records all Cash Receipts and Cash Payments.
- Usually a simple Single Column Cash Book (Cash only) or sometimes Two Column (Cash + Bank).
- Why? Because cash is the lifeblood. He needs to know his cash balance.
2. Personal Ledger (Debtors & Creditors) 👥
- He sells on credit, so he MUST know: "Who owes me money?" (Debtors).
- He buys on credit, so he MUST know: "Whom do I owe money?" (Creditors).
- He does NOT maintain a General Ledger (Expenses, Assets).
3. Other Subsidiary Books (Optional) 📚
- Sometimes, he might keep a rough Day Book for Credit Sales and Credit Purchases.
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Quiz Time! 🎯
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💡 Final Wisdom: "He knows how much cash he has, and who owes him money. For a small shopkeeper, that's often enough to survive." 🏪
Next up: Statement of Affairs Method - Finding Profit by comparing Capital! 🕵️♂️