NECO Accounting 2024 Theory — Question 1

Model answer

Incomplete records refer to a situation where a business is not practising full double-entry bookkeeping. Instead, it keeps an unconventional (single-entry) system that retains a reduced amount of financial data. Under this system it is possible to keep a cash-basis record of income, although not a full trial balance or balance sheet. It is feasible for the administrators of a firm to eventually convert to a full double-entry system, but as kept the records are incomplete.