Accounts from Incomplete Records — Flashcards

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Incomplete records are any accounting records that fall short of the complete double entry system. They do not record both aspects of every transaction, so they are incomplete, inaccurate, unscientifi…

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Single entry system is also called incomplete double entry system or incomplete records. It usually keeps only cash and personal accounts, so it does not follow double entry principles for all transac…

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The principle of double entry system is: every debit must have a corresponding credit. In this system, both aspects of every transaction are recorded, which makes it complete and systematic.

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It ignores the two-fold aspect of transactions. Often only cash and personal accounts are maintained, while real and nominal accounts are left out. As a result, trial balance, trading and profit and l…

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Under pure single entry, mostly cash book and personal accounts are maintained. Real and nominal accounts are generally not kept, so complete financial information is not available.

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Single entry system can be used by sole traders or partnership firms. Limited companies cannot maintain accounts under single entry system because legal requirements demand proper double entry books.

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A Statement of Affairs is a statement compiled like a balance sheet, with assets on the right and liabilities on the left. Capital is the balancing figure. It is not a balance sheet because it is part…

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A Statement of Affairs is not drawn from ledger balances verified by a trial balance. Its figures may include estimates, so the values of assets and liabilities may not be exact. A Balance Sheet is pr…