Indigenous/Informal Accounting systems

 

Indigenous or informal accounting systems are implemented in informal businesses. These are typically businesses that adopt a more casual approach to their bookkeeping systems. 

With these types of business there is usually not a fixed selling price, as it fluctuates according to the owner’s decisions and the cost price. 

Informal businesses replace stock as needed and usually keep low amounts on stock on hand.  

The capital of the business is provided by the owner and is often limited. 

References

  • Anon., 2007. The Answer series: Grade 11 Accounting. 2007 ed. Cape Town: The Answer.

  • Anon., 2019. Investopedia. [Online]. Available at: https://www.investopedia.com/ [Accessed 3 October 2019].

  • Doctor, K., 2015. FLIPHTML5. [Online]. Available at: http://fliphtml5.com/fkul/mgtf/basic [Accessed 1 October 2019].

  • T Hall, D. W. P. S. A. A. P. G. P. F., 2017. Accounting Study Guide. 2016 ed. Musgrave: New Generation Publishers .

Neha Pillay (2019)

Grade 10Keroshan PillayComment