Where records maintained are inadequate to facilitate the preparation of a trading and profit and loss accounts, this is described as
Question 1 Report
Where records maintained are inadequate to facilitate the preparation of a trading and profit and loss accounts, this is described as
Answer Details
When a business fails to keep adequate records that will enable it to prepare a trading and profit and loss account, this is known as incomplete records. Incomplete records refer to a situation where a business has not kept a complete record of all its financial transactions. It could be that the business has kept some records but not all, or the records are not properly organized, or they are missing altogether. This makes it difficult to determine the true financial position of the business and prepare a complete financial statement.
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