1. Incomplete records are a way to record accounting records that do not follow the double-entry system.
2. This record is also known as a single record where transactions are recorded once.
3. This system is usually practiced by small traders.
4. Generally, records kept by most merchants include:
(a) records of receipt of money and payment
(b) cash balances on hand and in banks.
(c) records of debtors and creditors.
(d) records of assets and liabilities held.
5. This single record system has some disadvantages as opposed to the double entry system, namely:
(a) Trial Balance cannot be prepared. So recording accuracy cannot be tested.
(b) difficult to detect errors and misappropriations by account clerk.
(c) control over complex business costs and expenses because of incomplete revenue and expenses information.
6. For businesses that keep records incomplete, there are two ways to determine net profit, namely:
(a) the method of comparing the final capital with initial capital.
(b) analytical methods.