Give any two advantages of Incomplete records.

Accounting records not strictly based on principles of double entry system but based on incomplete records and mere memory is known as accounting from incomplete records. Single entry is a misnomer, as no such system exists for recording transaction in accounting. Actually, accounting from incomplete records is a mixed system of recording business transactions in which some transactions are recorded as per double entry system and for certain transactions only a single entry is made in the books of accounts. transactions no recording is made in the books of accounts. Under this system, records related to cash account and personal accounts of debtors and creditors are maintained as per double entry system. Information relating to cash sales, cash purchases are recorded partially and information related to depreciation etc. are not recorded at all. In other words, we can say that accounting from incomplete records is just an attempt to record business transactions on the lines of double entry system. Reasons of Incomplete Records: Improper Knowledge: The mechanism of keeping incomplete records is due to improper knowledge of accounting principles. (ii) Inexpensive: This method is less expensive as compared to keeping records as per double entry system. As people having specialized knowledge in accounting are not appointed and the staff engaged in other activities and sometimes the owner himself maintains the records. (iii) Time Saving: This method is time saving in the sense that only a few records are maintained under such system. The information related to profit can be immediately ascertained without going with the lengthy process of preparation of trial balance first. Advantages of Incomplete Records: Following are some advantages of incomplete records: (i) Simple and Time Saving: This method is time saving in the sense that only a few records are maintained under such system. (ii) Cost Effective: This method is less expensive as compared to keeping records as per double entry system. (iii) Convenient: This method is very convenient in the sense that no rules and principles are to be followed. (iv) Highly Flexible: This mechanism is not based on any set rules, principles and accounting standards, as such it can be modified and changed as per the need and availability of time. read less