single entry / incomplete records

Single entry

Incomplete accounting records means at present it is not maintained on the basis of double entry system or records are lost due to fire, theft etc.

Although all records are lost but bank statement, cross ledger from creditors And debtors will be available.

Statement of affairs  (balance sheet before adjustment)

1 Ascertain closing capital by preparing a statement of affairs at the end of accounting period.

2 Add the amount of drawing to the closing capital

3 Deduct additional capital introduced from closing capital

4 Ascertain opening capital by preparing a statement of affairs at the beginning of the accounting period

5 Ascertain profit or losses by deducting opening capital from adjusted closing capital

Adjusted closing capital

Closing capital + Drawings – additional capital

6 make adjustment for items not yet adjusted

While calculating closing capital.

From opening and closing balance sheet find opening capital and closing capital afterwards prepare capital account .

Balancing  figure net profit for the year.


Difference between statement of affairs and balance sheet.

Statement of affairs                  Balance sheet

Based on estimated ledger –   on actual ledger

Balance of capital account – balance of capital

Will be calculated                 already available

Asset and liabilities   –   omission can be found

Omitted cannot be found

It is known as estimated  – it is actual financial

Financial statement             statement.