Financial Accounting Concepts

Incomplete records system is unscientific and Inaccurate

An incomplete records system is unscientific, incomplete, inaccurate and unsystematic. Explain

An incomplete records system is unscientific, incomplete, inaccurate, and unsystematic because it does not follow the accepted principles and standards of accounting. This can lead to a number of problems, including:

Unscientific: An incomplete records system does not use the scientific principles of data collection, analysis, and interpretation. This can lead to bias and inconsistency in the recorded information.

Incomplete: An incomplete records system may not record all of the financial transactions of a business. This can make it difficult to get a complete picture of the business’s financial performance.

Inaccurate: An incomplete records system may contain inaccurate information. This can be due to errors in recording transactions or to a lack of documentation.

Unsystematic: An incomplete records system may not have a systematic approach to data management. This can make it difficult to locate and retrieve specific information when needed.

Comparison with Double Entry System

The double-entry system is based on a scientific dual aspect concept that makes it possible to scientifically locate any error arising due to emission, omission or clerical mistake. Two sides of the trial balance will not tally if there is an error in the double-entry system. 

However, there is no such advantage in using the single-entry or incomplete record system. These records are maintained by novice accounting people or small traders who are not officially required to maintain books of account.

Considering the above differences with the double-entry system, we can observe the following limitations of an incomplete record system:

  • This system is inadequate and unscientific.
  • Automatic checks and account reconciliation are not feasible.
  • In non-trading entities, it is impossible to identify the exact surplus or deficit between income and expenses, and in commercial enterprises, the exact profit or loss.
  • Due to the improper maintenance of asset and liability records, the true financial status may not be known.
  • The system is unreliable; banks, tax officials, and others have no faith in it.
  • As neither feature is recorded, it is easier to conduct fraud.
  • Different periods’ trading performance and financial circumstances cannot be compared to arrive at business-advancing conclusions.


Overall, an incomplete records system is a risky and unprofessional way to manage a business. It is important for businesses to maintain complete and accurate records in order to get a clear picture of their financial performance, make informed decisions, and comply with the law.

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