Features of Incomplete Records
1. Unsystematic Recording: Transactions are recorded unsystematically, as there are no specific rules of bookkeeping under this system.
2. Incomplete Information: Only cash accounts and personal accounts of debtors and creditors are maintained. The real accounts and nominal accounts are not taken into consideration.
3. Convenient Recording: Records are maintained as per the need and convenience of the business owner.
4. Lack of Uniformity: Books of Accounts of two business units cannot be compared due to a lack of uniformity.
5. Personal Recordings: Personal transactions of an owner may be recorded under a single entry system of bookkeeping.
6. Inaccuracy: Profit and loss ascertained are inaccurate due to a lack of full information.
7. Calculation Error: Preparing Trial Balance is not possible, hence arithmetic accuracy of accounts cannot be determined, causing calculation errors.
8. Inappropriate Reflection: No asset, liabilities, income, or expenses are recorded under this system, thereby Balance Sheet prepared fails to give an accurate picture of the financial position of an enterprise.