Single entry and double entry bookkeeping
Incomplete Accounting Records -Meaning
Incomplete accounting records are those records which are not complete as per the double entry principle of accounting.
Reasons of incomplete records.
- Accountant ignores double entry principles.
- Destruction in books of accounts.
- Evasion of taxes.
Limitations of incomplete records. (Click on the link to download ppt)
- Difficult to conduct audit.
- Difficult to check the internal system.
- Difficult to identify the fraud.
- Helps in ascertaining Trading and Profit & Loss Account.
- Helps in checking the arithmetical accuracy of accounts.
The difference between Double entry system and Single entry system
Difference between Statement of Affairs and Balance Sheet
Points to Remember
- If closing capital is less than opening capital, it denotes loss, in case of no drawings.
- Incomplete records are maintained by traders.
- Credit purchases is the balancing figure of debtors account.
- A statement of affairs is a document that is structured to provide an accurate accounting of the assets and liabilities of a debtor