Question

Difference between double entry and incomplete records

Answer 1

Answer:

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In single entry system, incomplete records are maintained while in double entry system complete recording of transactions is there. ... Single Entry System maintains personal and cash accounts. On the other hand, personal, real and nominal accounts are kept in Double Entry System.

Answer 2

incomplete records

1. this method is suitable for small scale business units where the owners can directly control the affairs of the business.
2. both aspects of each transaction are not recorded.
3. only personal accounts are kept and in some cases, cash account is maintained.
4. personal transactions of the owner get mixed up with business transactions

5.trading, profit and loss account, and

balance sheet cannot be prepared.

double entry system

1. this method is suitable for large scale business units where the owners cannot directly control the affairs of the business.
2. both aspects of each transactions are recorded.
3. personal, real and nominal accounts are kept fully.
4. personal transactions of the owner are kept separate from business transactions.
5. trading, profit and loss account and balance sheet can be prepared.