XII – CE1 / CE 2

• DEAR STUDENTS,
This slide show will teach you completely
about ACCOUNTS FROM INCOMPLETE
RECORDS – CHAPTER 1 (ACCOUNTANCY)

Prepared by
N Karthick M.C.A., M.PHIL.,
KINGSTON MATRIC HR SEC SCHOOL, VANDAVASI
 XII ACCOUNTANCY

UNIT – 1 ACCOUNTS FROM INCOMPLETE RECORDS

TYPES OF ENTRY
 MEANING OF INCOMPLETE
RECORDS OR SINGLE ENTRY

• When accounting records are not strictly maintained

according to double entry system, these records are called
incomplete accounting records.

• For example
Expenses paid may be entered only in cash account.
 INCOMPLETE RECORDS ARE
FOLLOWED BY SOLE TRADERS
Features of Incomplete Records

2. Type of
1. Nature Accounts
maintained
Features of Incomplete Records

4. Financial
3. Lack of statements may
not represent true
uniformity and fair and fair
view
Features of Incomplete Records

6. Mixing up of
personal and
5. Suitability business
transactions
LIMITATIONS OF INCOMPLETE
RECORDS
Lack of Proper maintenance
of records.
Difficulty in preparing Trial
balance.
Difficulty in ascertaining true
profitability of the business.
LIMITATIONS OF INCOMPLETE
RECORDS
Difficulty in ascertaining
financial position.
Errors and frauds cannot be
detected easily.
Unacceptable to government
and other authorities.
Calculation of profit or loss through
statement of affairs
 STATEMENT OF AFFAIRS
• A Statement of affairs is a statement
showing the balances of assets and
liabilities on a particular date.

• Right Side Assets

• Left Side Liabilities

CAPITAL = ASSETS - LIABILITIES

FORMAT OF STATEMENT OF AFFAIRS
In the books of ……….
Statement of affairs as on ……..
DIFFERENCE BETWEEN STATEMENT OF
AFFAIRS AND BALANCE SHEET
DIFFERENCE BETWEEN STATEMENT OF
AFFAIRS AND BALANCE SHEET
Steps to be followed to prepare final
accounts from incomplete records
• Opening
statement Step - 2
of affairs • The final step is to
is to be • Missing prepare trading
prepared. figures must and profit and
be found out loss account and
with the balance sheet.
available data.
Step - 1 Step - 3
i) Format of Total Debtors Account
ii) Format of Bills receivable
account
iii) Format of Total Creditors
Account
iv) Format of Bill Payable Account
PREPARED BY
N Karthick M.C.A., M.Phil.,
Kingston Matriculation Hr Sec School, Vandavasi. T.Dt.,
604408 . H/P : 9150324587