16. Incomplete records

Question 1

Calculate missing numbers

Answer 1

accounting equation
balancing figure
profit ratios - mark up and margin

Question 2

Accounting equation

Answer 2

Assets = liabilities + capital

Question 3

Change in capital can only be caused by

Answer 3

an introduction of capital
net loss or profit for the period
drawings

Question 4

Balancing figure approach receivables

Answer 4

missing figure could be
credit sales
money received from receivables

Question 5

Balancing figure approach payables

Answer 5

credit purchases

money paid to payables

Question 6

Balancing figure approach cash at hand

Answer 6

drawings

money stolen

Question 7

Balancing figure approach cash at bank

Answer 7

cash sales

cash stolen

Question 8

missing expense accounts accruals

Answer 8

cash paid
+ closing accrual
- opening accrual
= cost

Question 9

missing expense accounts prepayments

Answer 9

opening prepayment
+ cash paid
- closing prepayment
= cost

Question 10

mark up

Answer 10

means profit is based on the cost of sales i.e. cost = 100% mark up 20% = sales 120%

Question 11

margin

Answer 11

profit is based on the selling price

sales = 100% margin = 20% cost = 80%