139. Changing from Single Entry to Double Entry.
A Single Entry Ledger contains only Personal A/cs ; a Double Entry Ledger contains both Personal A/cs and Impersonal A/cs. To change from Single Entry to Double Entry, it is necessary, therefore, to open Impersonal A/cs in the Ledger, in addition to the Personal A/cs already there.
Make a Single Entry Financial Statement and close the Proprietor's A/c.
Make a journal entry from the Single Entry Asset and Liability Statement : 1st Method—make a journal entry containing only the Impersonal A/cs. 2nd Method—make a journal entry containing both the Personal A/cs and the Impersonal Acs ; check the Personal A/cs and post only the Impersonal A/cs.
Post this opening journal entry and take a trial balance. From the 2nd Method, it will be seen that all the Single Entry Ledger lacks of being in balance, is the Impersonal A/cs.
Proceed by Double Entry, in the same way as you would after making the opening journal entry from the Assets and Liabilities in a Double Entry Set. Bring down the balance in the Cash Book, and continue the Bill Book.
140. Journal Entry to Change from S. E. to D. E.—Illustration Set. ST. CATIIARINES, December 2, 19—.