Single entry and double entry system

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.

  1. Accountant ignores double entry principles.
  2. Destruction in books of accounts.
  3. Evasion of taxes.

 Limitations of incomplete records. (Click on the link to download ppt)

  1. Difficult to conduct audit.
  2. Difficult to check the internal system.
  3. Difficult to identify the fraud.
  4. Helps in ascertaining Trading and Profit & Loss Account.
  5. 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

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