Incomplete records system is unscientific, incomplete, inaccurate and unsystematic”. Explain
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It is an incomplete and unscientific system.
Automatic check and reconciliation of accounts are not possible.
Correct excess or diminution of income over expenditure in non-trading concerns and correct profit or loss in business houses cannot be ascertained.
As the records of assets and liabilities are not properly maintained, correct financial position may not be known.
The system is not reliable, Banks and income tax authorities etc., have no confidence in it.
As both the aspects are not recorded, frauds can more easily be committed.
Trading results and financial positions of different periods cannot be compared to arrive at useful results for the progress of business.
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