Question

Why do Businesses have incomplete records?

Answer 1

The proprietor may keep the accounting records on the basis of a single entry due to the following reasons:

• It is more convenient to maintain records as per the single entry system.
• Maintaining incomplete records consumes less time.
• The double entry system is comparatively an expensive way of maintaining financial accounts.
• The proprietor has no knowledge or lack of knowledge about the accounting principles and concepts.
• The accountants may charge a handsome amount as fees.

Also see: Accounts From Incomplete Records