(92)-INCOMPLETE RECORDS ACCOUNTS

Incomplete Records Accounts

Incomplete records problems occur when a business does not have a full set of accounting records, either because:

• The proprietor of the business does not keep a full set of accounts
• Some of the business accounts are accidentally loss or destroyed

The problem for the accountant is to prepare a set of year end accounts for the business; i.e. a trading, profit and loss account, and a balance sheet. Since the business does not have a full set of records, preparing the final accounts is not a simple matter of closing off accounts and transferring balances. The task of preparing the final accounts involves:

• Establishing the cost of purchases and other expenses
• Establishing the total amount of sales
• Establishing the amount of creditors, accruals, debtors and prepayments at the end of the year