Q.What are the differences between double entry system and incomplete records ?

Double entry is a complete, scientific system recording both aspects of every transaction; incomplete records are an incomplete, unscientific method keeping only some accounts. Differences between Double Entry System and Incomplete Records | Basis | Double Entry System | Incomplete Records | | --- | --- | --- | | Recording of aspects | Both debit and credit aspects of every transaction are recorded | Only one aspect, or partial aspects, are recorded | | System | Complete, scientific and systematic | Incomplete, unscientific and unsystematic | | Accounts maintained | All personal, real and nominal accounts are kept | Mainly cash and personal accounts are kept; real and nominal accounts are ignored | | Trial Balance | Can be prepared to check arithmetical accuracy | Cannot be prepared | | Ascertainment of profit | Profit/loss found accurately through Trading and P&L Account | Profit found only by estimation (statement of affairs method) | | Suitability | Suitable for all types and sizes of business | Suitable only for small businesses / sole traders | This comparison is part of the Acco …