Question

What are the features of incomplete records?

Answer 1

Features of incomplete records are as follows:

1. It is an unsystematic method of recording transactions.

2. Records concerned with cash transactions and personal accounts are maintained. There exists no information on profit and loss or assets and liabilities or revenues and expenses.

3. Transactions of owners that are personal may also be recorded in the cash book.

4. The accounts from different organisations are not comparable due to lack of uniformity.

5. To determine profit or loss or for obtaining any other information, only the original vouchers can provide the necessary figures like sales invoice or purchase invoice, etc.

6. Profit and loss for the business cannot be determined and the true position of assets and liabilities also cannot be determined.

Also read:

• Accounts From Incomplete Records
• Marshalling of Assets and Liabilities
• Accounting MCQs
• What Is the Balance Sheet Equation
• Balance Sheet Vs Consolidated Balance Sheet

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