Single Entry System:

Single entry system is a method of bookkeeping in which each financial transaction is recorded only once. It is a simple and less time-consuming method of recording financial transactions.

Possible and Impossible Preparations in Single Entry System:

1. Account Sales:

In single entry system, account sales can be prepared. It is a document that shows the details of goods sold on credit. It includes the name and address of the customer, date of sale, quantity, rate, amount, and other relevant details.

2. Balance Sheet:

In single entry system, balance sheet cannot be prepared. It is a statement that shows the financial position of a business at a particular point in time. It includes assets, liabilities, and owner's equity. Since single entry system does not maintain a complete set of books, it is not possible to prepare a balance sheet.

3. Trial Balance:

In single entry system, trial balance cannot be prepared. It is a statement that shows the arithmetical accuracy of the books of accounts. Since single entry system does not maintain a complete set of books, it is not possible to prepare a trial balance.

4. Receipts and Payments A/c:

In single entry system, receipts and payments account can be prepared. It is a summary of cash receipts and payments during a particular period. It includes the opening balance, cash receipts, cash payments, and closing balance.

Conclusion:

Thus, we can conclude that in single entry system, account sales and receipts and payments account can be prepared, but balance sheet and trial balance cannot be prepared.