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SECOND METHOD-Conversion into Double entry methods by finding missing information
Following steps have to be taken
- Opening Capital is calculated by preparing an Opening Statement of Affairs.
- Cash Book is updated by adding all the missing information. Opening and closing cash balance has to be ascertained.
- Total Debtors Account has to be prepared.
CLICK HERE TO DOWNLOAD FORMAT-TOTAL DEBTORS ACCOUNT (pdf)
- Total Creditors Account has to be prepared.
CLICK HERE TO DOWNLOAD FORMAT-TOTAL CREDITORS ACCOUNT (pdf)
- Final Accounts are prepared i.e. Trading and Profit & Loss Account and Balance Sheet from the information collected in Steps 1 to 4.
