Incomplete Records and Club Accounts

Abstract

Edith Purchase runs a profitable business selling ladies clothing on a party-plan basis. She, or her friends and contacts, will hold a tea or sherry party to which women are invited; Edith will then display and sell her stock to those who attend. As far as book-keeping and accounting are concerned, she says, ‘I just pay the bills as they come in and bank the cash I earn at my parties. So long as my bank balance is OK then I’m happy — so far it always has been. Every year I send my box of bills and bank statements to my accountant and he prepares my accounts for the tax man. Mind you, he charges me an exorbitant fee for them!’