PPT - Accounts from Incomplete Records Commerce Notes | EduRev

Accountancy Class 11

Commerce : PPT - Accounts from Incomplete Records Commerce Notes | EduRev

 Page 1


Accounts from Incomplete 
Records
Page 2


Accounts from Incomplete 
Records
Why Incomplete Records?
• High cost of record keeping
• Lack of knowledge
• Time 
• Lack of awareness for the need of financial 
records
Found in Small Businesses and hence can be 
termed as Micro Business Accounting(MBA).
Page 3


Accounts from Incomplete 
Records
Why Incomplete Records?
• High cost of record keeping
• Lack of knowledge
• Time 
• Lack of awareness for the need of financial 
records
Found in Small Businesses and hence can be 
termed as Micro Business Accounting(MBA).
What are recorded?
• Cash transactions 
• Credit transactions of revenue goods and 
capital goods in the personal accounts of 
Suppliers and Customers.
• Double entry completed for cash receipts and 
payments on account of Customers and 
Suppliers.
• Non recurring transactions like purchase of 
fixed assets, borrowings etc.
Contact: asand343@gmail.com
Page 4


Accounts from Incomplete 
Records
Why Incomplete Records?
• High cost of record keeping
• Lack of knowledge
• Time 
• Lack of awareness for the need of financial 
records
Found in Small Businesses and hence can be 
termed as Micro Business Accounting(MBA).
What are recorded?
• Cash transactions 
• Credit transactions of revenue goods and 
capital goods in the personal accounts of 
Suppliers and Customers.
• Double entry completed for cash receipts and 
payments on account of Customers and 
Suppliers.
• Non recurring transactions like purchase of 
fixed assets, borrowings etc.
Contact: asand343@gmail.com
Is there need to convert into double 
entry system?
• No, if only approximate profit is to be 
determined.
• Yes, if the results of operations and  financial 
position are to be determined which is required 
– for filing Income Tax Returns; 
– to obtain loans from financial institutions;
– to analyse the financial statements in a meaningful 
manner and understand for making rational decisions. 
Page 5


Accounts from Incomplete 
Records
Why Incomplete Records?
• High cost of record keeping
• Lack of knowledge
• Time 
• Lack of awareness for the need of financial 
records
Found in Small Businesses and hence can be 
termed as Micro Business Accounting(MBA).
What are recorded?
• Cash transactions 
• Credit transactions of revenue goods and 
capital goods in the personal accounts of 
Suppliers and Customers.
• Double entry completed for cash receipts and 
payments on account of Customers and 
Suppliers.
• Non recurring transactions like purchase of 
fixed assets, borrowings etc.
Contact: asand343@gmail.com
Is there need to convert into double 
entry system?
• No, if only approximate profit is to be 
determined.
• Yes, if the results of operations and  financial 
position are to be determined which is required 
– for filing Income Tax Returns; 
– to obtain loans from financial institutions;
– to analyse the financial statements in a meaningful 
manner and understand for making rational decisions. 
When no need to convert into 
double entry
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