Saturday 11 June 2011

Accounting From Incomplete Records


Single Entry System:
Single entry system consist of the following book-keeping records.
(a) A day book or general journal
(b) A cash book
(c) Ledger accounts for individual customers and creditors.

Double Entry System:
A system in which two sides of every transaction are recorded.



Statement Of affairs:
Statement of affairs is a short of balance sheet having assets on left side and liabilities and capital on the right side under single entry system.

Increase net worth method:
The method in which adjusted capital at the end and capital in the beginning are compared to ascertain the profit or loss under single entry system.

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