Explanation
Incomplete records - Accounting records, which are not strictly kept according to double entry system are known as incomplete records. Many authors describe it as single entry system. However, single entry system is a misnomer because there is no such system of maintaining accounting records. It is also not a ‘short cut’ method as an alternative to double entry system.
In this system of accounting, profit is ascertained as :
Profit = Capital at the end + Drawings - Capital in the beginning.
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