Accounts from Incomplete Records

and revenues is partially recorded. Hence, these are usually referred as incomplete records. L EARNING O BJECTIVES After studying this chapter, you will be able to : state the meaning and features of incomplete records; calculate profit or loss using the statement of affairs method; distinguish between balance sheet and statement of affairs; prepare trading and profit and loss account and balance sheet from incomplete records; and detect the missing figures/information by preparing relevant accounts. In complete records may be due to partial recording of transactions as is the case with small shopkeepers such as grocers and vendors.

In case of large sized organisations, the accounting records may be rendered to the state of incompleteness due to natural calamity, theft or fire. The features of incomplete records are as under : (a) It is an unsystematic method of recording transactions. Generally, records for cash transactions and personal accounts are properly maintained and there is no information regarding revenue and/ or gains, expenses and/or losses, assets and liabilities. (c) Personal transactions of owners may also be recorded in the cash book.

Different organisations maintain records according to their convenience