Question

What are the possible reasons for keeping incomplete records ?

Answer 1

Following are the possible reasons for keeping incomplete records

(i) Incomplete records are maintained by people who do not have the proper knowledge of accounting principles;

(ii) Incomplete records can be maintained with the involvement of very low cost as specialised accountants are not appointed by the organisations;

(iii) Time consumed in maintaining records is less as only a few books are maintained;

(iv) It is a convenient mode of maintaining records as the owner may record only important transactions according to the need of the business.