Fin611 GDB 1 Solution

Miss. Nazia is the owner of a business entity with a capital of Rs. 10 Million. She has introduced her own brand of ladies fashion & bridal garments sold through boutiques in various cities. According to her understanding there are two systems of record keeping available; single entry system and double entry system. Keeping in view her business profile, you, being a chief accountant, are required to suggest a suitable accounting system for record keeping? You are also required to support your suggested system with valid arguments/reasons.

Solution:

Being a chief accountant I suggest a double entry system. Because Miss. Nazia are supplied her own brand of ladies fashion & bridal garments sold through boutiques in various cities. That are the large scale of the business. In large scale of business we adopted a double entry system.