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Incomeplete records, complete double entry for all transaction --->…
Incomeplete records
Techniques of obtaining
complete accounting information
techniques
Derivation
analysis of sales and purchase ledger
disitnction bw business exp and drawings
rent
common eb
business cash
goods taken from business
cash withdrawal
Fresh investments by propiriters partners
Types
Pure single entry
Only personal a/c
simple single entry
Personal a/c
cash book
quasi single entry
persoanl
Cashbook
subsidiary
sales
purchase
bills
Intro
Features
Inaccurate
unsystematic
unscientific
cash book contains
personal and business transactions
No uniformity in maintaining records
Correct profits cant be determined
Ascertainment of profit
by capital comparison
networth method (or)
Statements of affairs method
Method
capital at end
fresh intro
+drawings
=capital at begginign
Preparation of SOA
capital = assests - liability
goal is to find capital
Difference b/w balance sheet/
statements of affairs
reliability
capital
Ommision
Objects
Basis of valuation
closing capital - opening = profit
complete double entry for all
transaction ---> make triall balance
single entry system