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JAMB Principles of Accounts 2003 Question 36

Question 36

Incomplete Records

The first step in converting a single entry to a double entry system of bookkeeping is to prepare a

  1. A.suspense account
  2. B.statement of affairs
  3. C.realization account
  4. D.trial balance
Show the answer and explanation

Answer: B (statement of affairs)

Explanation

A statement of affairs is drawn up first to find the opening capital before the double-entry accounts are built.