Question

explain the exception in account of incomplete records​

Answer 1

Answer:

Incomplete records refers to a situation in which an organization is not using double-entry bookkeeping. Instead, it is using a more informal accounting system, such as a single-entry system, to maintain a reduced amount of information about its financial results. Under a single-entry system, it is possible to maintain a cash-basis income statement, but not a balance sheet.

Reasons for Incomplete Records

It is also possible that the managers of a business intend to maintain a double-entry bookkeeping system, but the underlying accounting records are incomplete. There are many reasons for this situation, including those noted below.

Answer 2

There can be two ways of maintaining the accounting records, one is the double entry system and another is the single entry system. The records maintained according to the single entry system are known as Incomplete Records. Usually, small firms like grocery shops, general stores, food joints, etc. keep their books on the single entry system.

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