Unit-15 Accounts From Incomplete Record-I

In this unit you will learn about the net worth method of ascertaining the profit of a business owned by a sole proprietor or a partnership firm.

Why do some persons prefer to keep their accounts in the form of incomplete records? State the salient features of such records.

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Learning Pundits Content Team

Written on Apr 24, 2019 1:39:19 PM

The accounts maintained under this system are incomplete and unsystematic. Kohler in his ‘Dictionary for Accountants' has defined it as 'a system of book-keeping in which, as a rule, only records of cash and personal accounts are maintained, it is always incomplete double entry varying with the circumstances'.

Some people prefer to call it a 'Quasi Single Entry System' or simply 'Incomplete Records'. ‘This system is generally :adopted by small traders, petty shop-keepers, doctors, advocates, and other professionals. The system can be adopted by sole proprietary concerns :and partnership firms. The limited companies. however. cannot adopt it because they have to maintain complete records of all transactions as well as those of assets and liabilities us per the requirements of’ the Indian companies Act, 1950. 

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