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CA Foundation · Accounting · Accounts from Incomplete Records

Which of the following is a recognised feature of accounts maintained under the single entry system (incomplete records)?

Under the single entry system, personal accounts and cash book are generally maintained, but nominal and real accounts are often not properly kept. Double entry is not followed, so a reliable Trial Balance cannot be prepared and some figures must be estimated.

  1. AEvery transaction is recorded with both a debit and a credit aspect
  2. BPersonal and cash accounts are usually maintained, while nominal and real accounts are often not properly keptCorrect
  3. CA Trial Balance is always prepared to check arithmetical accuracy
  4. DFinal accounts are prepared directly from the ledger without any estimation

Explanation

Under single entry, records are mostly of cash and personal accounts. Nominal and real accounts are generally not kept systematically. Since the double aspect is not followed, a Trial Balance cannot be relied on, and estimation is often needed for final accounts.

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