Incomplete Records

Question 1

Incomplete records

Answer 1

When a business does not keep a proper record of their transaction and do not operate the double-entry system of bookkeeping.

Question 2

Accounting bases

Answer 2

Various different procedures and systems that a business may choose from when preparing their accounts

Question 3

Accounting policies

Answer 3

The specific accounting bases that are chosen for use in the business, usually outlined in the notes of the accounts.

Question 4

(Backwards) What advice would you give to the business owner in relation to record keeping?

Answer 4

They should keep a detailed cashbook and general ledger supported by appropriate subsidiary daybooks, to allow a business to prepare accurate trading and profit and loss a/c and would avoid reliance on estimates.

Question 5

(Forwards) What additional information is available to users of the double-entry bookkeeping system?

Answer 5

Total purchases, total sales, bank, capital, drawings, bad debts, ledger a/cs and trial balance, expenses due?prepaid, discounts allowed/received.