Financial Accounting SSS2 Third Term

WEEK – ONE - THREE

SINGLE ENTRY AND INCOMPLETE RECORDS

CONTENT

TOPIC: SINGLE ENTRY AND INCOMPLETE RECORDS
 

CONTENT: (i) Introduction (ii) Steps Involved in preparing a P&L A/C and Balance Sheet from Incomplete Records (iii) Example

i. INTRODUCTION:

Most businesses keep records of receipts and payments. The records may consist of bank paying – in – book counterfoils, cheque book counterfoils and bank statements in addition to supplies invoices and copies of sales invoices. From these records it may be possible to prepare a P&L A/C and Balance Sheet.

ii STEPS INVOLVED IN PREPARING A P&L A/C AND BALANCE SHEET FROM INCOMPLETE RECORDS; - The necessary steps are as follows: -

Step 1: Preparing an opening statement of affairs (so as to obtain opening capital)

Step 2:.... View More