Archive about 'Incomplete Records'

List Of Topics Under The Heading Incomplete Records Or Single Entry Accounting

Click to the respective topic on Incomplete Records:

Content Page On INCOMPLETE RECORDS

1.0

Single Entry Accounting and Its Disadvantages

2.0

Part 1: How to compute profit/(loss from Incomplete Records –Comparison Method

3.0

Part 2: How to compute profit/(loss) from Incomplete Records

4.0

Accountancy Mathematics on Incomplete records re: computation of manager’s commissions

5.0

QUESTIONS BANK:
Accounting Test Question Only IR No.1

Accounting Test Question No IR [...]

Answer to Accounting Test No IR3 On Incomplete Records

The steps are:
(a) from the question, inserts all the figures for both assets and liabilities and use the the capital at the end of financial year 2 to balance the Statement Of Affairs.
(b) after (a),use the simple formulae to compute the Net profit which is =(closing capital + drawings) minus (opening capital + additional capital [...]

Accounting Question Test Paper No.IR3 (With Answer) On Incomplete Records

The below question illustrates the preparation of a simple Statement Of Affair (all the assets and liabilities are given with the balancing figure of the capital) and using the net difference of closing and opening capital adjustments to compute the net profit:-

Jim commenced business on 1 April Year 1 with $5,000 in the business [...]

ANSWER To Accounting Question No IR 2 On Incomplete Records

ANSWER To Accounting Question No IR 2 On Incomplete Records
(a) Jim’s Statement Of Affairs as at 31 st December 2006 & 2007

2006

2007

Fixed Assets

Premises

25,000

Machines(W1)

20,000

18,500

Less: Depreciation

8,000

12,000

9,250

37,000

34,250

Current Assets

[...]

Financial Accounting Test Paper (With Answer) No.IR 2 On Incomplete Records

Financial Accounting Test Paper (With Answer) No.IR 2 On Incomplete Records
Question:
Jim did not keep a Ledger. He began trading on 1 January Year 2000 with business premises costing $25,000 and machines costing $20,000. At 31st December Year 2006 and 2007 his other assets and liabilities were summarized as follows:

31/12/06

31/12/07

Bank overdraft

5,040

3,270

Trade creditors

4,450

4,820

Accrued expenses

570

370

Prepayments

1,250

1,500

Trade debtors

12,300

14,600

Stocks

Finished goods

7,900

10.050

Work-in-progress

5,300

4,600

Raw [...]

Accounting Test Question IR No.1 On Incomplete Records

Any change in capital structure will be influenced by any one or a combination of the following transactions, events or results:

introduction of capital;
drawings; and/or
trading profits or losses.

By using the accounting equation, and given the values of opening and closing capital together with drawings and the amounts of any capital introductions, [...]

Computation of Profit/(Loss) From Incomplete Records (Part 2)

In this final part, the second method used to ascertain profit/(loss) from incomplete records are :

The Analysis Method

· This is a frequently asked question in examination

· Many examination questions require the preparation of the Trading, Profit and loss account and Balance sheet from incomplete record. Most of the time, certain information is given and the student [...]

Computation Of Profit/(Loss) From Incomplete Records ( Method 1: Comparison Method)

Basically, there are two (2) methods of finding the operating results for an accounting period from incomplete records.
This article deals with the first method by using the Comparison Method with the basic accounting equation:

Method 1: The Comparison Method
(A) This method is to compare the OPENING capital with that of the CLOSING capital.
Opening Capital + Profit [...]

Accountancy Mathematics: Incomplete Records -”Computation of Manager’s Commission

In Incomplete records, examination question often includes manager’s commission.

The commission may be expressed as a percentage of profits AFTER such commission had been deducted.

Illustration:
The net profits of a business are $500,000 and the manager is entitled to 10% of the net profits AFTER such commission has been deducted.
Question: Compute [...]

Disadvantages of Single Entry Accounting (Part 1)

Disadvantages as follows:

The detection of errors is difficult and fraudulent entries are easier to make. The financial records being incomplete make it impossible to extract a Trial Balance to check the arithmetical accuracy of the entries.

Comparison with last years very difficult because of the unreliability of the results extracted from such incomplete records.

Due to incomplete [...]