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How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDS
- a)Only personal account is maintained in it
- b)Arithmetic accuracy can not be checked in it
- c)Both aspects of every transaction are recorded
- d)As True and fair financial position can not be maintained
Correct answer is option 'C'. Can you explain this answer?
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How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only person...
Double Entry System vs Incomplete Records
The double-entry system and incomplete records are two different methods of accounting that have distinct characteristics. Here is a detailed explanation of how they differ from each other:
Double Entry System:
1. Recording: In the double-entry system, both aspects of every transaction are recorded. This means that every transaction has a debit entry and a corresponding credit entry.
2. Completeness: It ensures the completeness of financial records as every transaction is recorded in detail.
3. Accuracy: The system allows for the verification of the arithmetic accuracy of the accounts. The debit and credit entries should always balance, ensuring accuracy in recording transactions.
4. Financial Position: It provides a true and fair view of the financial position of the business by maintaining all relevant accounts, including personal, real, and nominal accounts.
Incomplete Records:
1. Recording: In incomplete records, only personal accounts are maintained. Personal accounts include accounts of individuals, creditors, and debtors.
2. Completeness: It lacks completeness as other types of accounts, such as real and nominal accounts, are not recorded.
3. Accuracy: The system does not allow for the verification of the arithmetic accuracy of the accounts as only partial information is recorded.
4. Financial Position: It is difficult to determine the true and fair financial position of the business as important aspects of the accounts, such as assets, liabilities, and expenses, may not be recorded.
In conclusion, the main difference between the double-entry system and incomplete records lies in the completeness, accuracy, and maintenance of various types of accounts. The double-entry system ensures the recording of both aspects of every transaction, maintains completeness and accuracy, and provides a true and fair financial position. On the other hand, incomplete records only maintain personal accounts, lack completeness and accuracy, and make it difficult to determine the true financial position.
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The double-entry system and incomplete records are two different methods of accounting that have distinct characteristics. Here is a detailed explanation of how they differ from each other:
Double Entry System:
1. Recording: In the double-entry system, both aspects of every transaction are recorded. This means that every transaction has a debit entry and a corresponding credit entry.
2. Completeness: It ensures the completeness of financial records as every transaction is recorded in detail.
3. Accuracy: The system allows for the verification of the arithmetic accuracy of the accounts. The debit and credit entries should always balance, ensuring accuracy in recording transactions.
4. Financial Position: It provides a true and fair view of the financial position of the business by maintaining all relevant accounts, including personal, real, and nominal accounts.
Incomplete Records:
1. Recording: In incomplete records, only personal accounts are maintained. Personal accounts include accounts of individuals, creditors, and debtors.
2. Completeness: It lacks completeness as other types of accounts, such as real and nominal accounts, are not recorded.
3. Accuracy: The system does not allow for the verification of the arithmetic accuracy of the accounts as only partial information is recorded.
4. Financial Position: It is difficult to determine the true and fair financial position of the business as important aspects of the accounts, such as assets, liabilities, and expenses, may not be recorded.
In conclusion, the main difference between the double-entry system and incomplete records lies in the completeness, accuracy, and maintenance of various types of accounts. The double-entry system ensures the recording of both aspects of every transaction, maintains completeness and accuracy, and provides a true and fair financial position. On the other hand, incomplete records only maintain personal accounts, lack completeness and accuracy, and make it difficult to determine the true financial position.
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How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer?
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How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer?.
How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer?.
Solutions for How DOUBLE ENTRY SYSTEM is differ from INCOMPLETE RECORDSa)Only personal account is maintained in itb)Arithmetic accuracy can not be checked in itc)Both aspects of every transaction are recordedd)As True and fair financial position can not be maintainedCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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