4.17 Incomplete Records

Question 1

What is statement of affairs?

Answer 1

• a document showing a company’s assets and liabilities at a certain date, usually prepared when a company is about to go bankrupt.

Question 2

How to find capital? liabilities?

Answer 2

capital = assets - liabilities
liabilities = assets - capital

Question 3

How to calculate credit sales?

Answer 3

credit sales : (opening trade receivables)
+ payment/ receipts from receivables
+ receipts from cash sales
+ cash drawings
+ closing debtors.
+ Irrecoverable debts.
+ returns inwards / sales returns
+ discount allowed.

Question 4

how to calculate credit purchase?

Answer 4

credit purchases : (opening trade payables)
+ cash/cheques paid
+ cash purchases.
+ returns outwards/purchases returns
+ discount receives
+ closing trade payables.

Question 5

how to calculate profit?

Answer 5

closing capital- opening capital

Question 6

How to calculate mark up ?

Answer 6

markup = gross profit 100
—————– X
cost price

Question 7

how to calculate margin?

Answer 7

margin = gross profit 1000
—————— X
sales