What are
the possible reasons for keeping incomplete records?
What are the possible reasons for keeping incomplete records?
The
possible reasons for keeping incomplete records are:
1.
Simple method: Proprietors, who do not have the proper
knowledge of accounting principles, find it much convenient and
easier to maintain their business records under this system.
2. Less
time consuming: Maintaining books according to the single entry
system is less time consuming, as only few books are to be
maintained. Further, the books are not as comprehensive as
they are under double entry system.
3. Less
expensive: It is an economical mode of maintaining records, as
there is no need to appoint specialised accountant.
4.
Flexible: Owner may record transactions as per his/her own needs.
It can be easily adjusted or changed whenever needed.
The possible reasons for keeping incomplete records are:
1. Simple method: Proprietors, who do not have the proper knowledge of accounting principles, find it much convenient and easier to maintain their business records under this system.
2. Less time consuming: Maintaining books according to the single entry system is less time consuming, as only few books are to be maintained. Further, the books are not as comprehensive as they are under double entry system.
3. Less expensive: It is an economical mode of maintaining records, as there is no need to appoint specialised accountant.
4. Flexible: Owner may record transactions as per his/her own needs. It can be easily adjusted or changed whenever needed.
