Question

What are the possible reasons for keeping incomplete records?

Answer 1

Following is 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 specialized 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.