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Documenting the accounting system
There are 3 methods generally used to document the clients system.
Narrative notes:Written description of the system
Advantages:-
Comprehensiveeasy tp delegatestory approachsufficient for small or simpleDisadvantages:-
difficult to update if hand writtendifficult to digest if complex system
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limitations of using a periodic inventory system
ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annua
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