Discuss the Merits and Demerits of Single Entry Bookkeeping and Incomplete Records and Give Reasons That Justify...

Discuss the merits and demerits of atomic number 53 gateway bookkeeping and incomplete records and ease up reasons that justify its existence irrespective of its short coming: adept entry and incomplete records refers to a situation where fear legal proceeding be non recorded and adjudicated according to the accounting principles. This mode of whizz entry and incomplete records has got consequences; It promotes fraud because there is neediness of control of the subscriber line transactions. information is not enough to conjure up that someone is rig or stealing from the geological formation. It is serious to evaluate the surgery and fiscal position of the business because the debit entries do not correspond with the credit entries. The profits or losses ar not well assessed. In case the organization inescapably to sell out shargons of the business, it becomes very difficult to mend the look upon of the sh ars. The value of the business is hardly ev aluated. Wrong and brusk decisions are taken because the information is not sufficient in parliamentary law to take the best decisions for a better phylogeny of the organization. It is hard for tax assessors to evaluate the value of payable taxes by a business that has incomplete records.

Financial aid is unremarkably refused to such businesses with incomplete financial records, because there is no room the financial institution may be ensured of getting the monetary election back other than by analyzing the financial statements of an organization. However, for businesses using single entry records, it do es not require a lot of gild from the acco! untant; hence it reduces on the cost of labor for the business. And excessively the single entry and incomplete records can be regarded as a solution in case of loss of records by means of accidents such as flood, fire or even toilet intention as a result of fraud. Some businesses are still using this practice for their bookkeeping because of; ØSome business owners do not appreciate the value of their businesses, this means in some...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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