Accountancy, asked by Aditya66411, 11 months ago

What practical difficulties are encountered by a trader due to incompleteness
of accounting records?

Answers

Answered by bhavishap70
0

Answer:

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Explanation:

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Answered by sonalip1219
0

The answer is stated below:

Explanation:

The difficulties which are faced by the trader because of the incompleteness of accounting records, which are:

  1. Persuade fraud- When the records are incomplete, then it encourage the fraud and provide the adequate scope for the carelessness as well as for bluffing.
  2. Problem in analysing the true as well as correct financial statement - The profit and loss could not ascertained, which lead to that the balance sheet cannot be prepared. And lack of balance sheet will not reflect or state the true position of the company.
  3. Accounts Accuracy - When the records are incomplete, then the accuracy of the accounts could not ensured.
  4. Problem in comparison - Because of the incomplete records as well as non availability of the prior year data, then the comparison is not possible and with other firms comparisons will not be possible.

You can learn more from here about incomplete records:

https://brainly.in/question/9767469

You can learn more from here about  use of incomplete records:

https://brainly.in/question/15410501

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