Incomplete record system refers to a situation in which an organization is not using double-entry bookkeeping, but instead, it is using a more informal accounting system, such as a single-entry system, to maintain a reduced amount of information about its financial results. Under a single-entry system, it is possible to maintain a cash-basis income statement, but not a balance sheet. There are many reasons for incomplete records, including inadequate systems, fraudulent behavior, and loss during transition. Incomplete records are prepared as per the need and convenience of the business owner, as there are no set rules for recording them. Some notable features of incomplete records include unsystematic recording, dependency on original vouchers, and lack of consistency. The limitations of incomplete records include lack of arithmetic accuracy, failure to provide details of assets, liabilities, incomes, and expenses of the firm, and difficulty in tracking where money was spent or calculating accurate profit and loss. If a business has incomplete records and needs to prepare complete financial statements, a method called ‘statement of affairs’ is often used. This involves using whatever records are available, along with additional information from the business owner, to create a reasonable estimate of the business’s financial position.