CH13 - Incomplete Records

Question 1

Sales formula

Answer 1

Selling price = cos + profit

Profit,
Mark up based on cos
Margin based on selling price

Question 2

Closing capital formula

Answer 2

Aset - liability (year end value)

Question 3

How to find purchase?

Answer 3

Payable account
Cos = o/s + purchases - c/s

Question 4

Mark up & margin formula

Answer 4

Mark up = profit/cos ×100
Margin = profit/sales ×100

Question 5

Gross profit percentage

Answer 5

Calculate using margin based on sales

Question 6

Stolen/destroyed goods/inventory

Answer 6

1) kira actual stock
COGS = o/s + purchase - c/s

2) kira estimated stock (mark up/margin)
Sales = COGS + profit
COGS = ?

3) Kira difference
= actual - estimated

Question 7

Double entry:
If stolen/destroyed goods are INSURED.

Answer 7

Dr Insurance claim (Receivables)
Cr COGS (SOPL)

When insurance being paid,
Dr Cash
Cr Insurance Claim (Receivable)

Question 8

Double entry:
If stolen/destroyed goods are NOT INSURED.

Answer 8

Dr Expenses (inventory losses)
Cr COGS (SOPL)

Question 9

DRAWINGS
Double entry;

Answer 9

Dr Drawings
Cr bank

When owner pays personal income into the business bank account:
( apabila bayar)
Dr Bank
Cr Drawings

The owner may pay personal expenses out of it:
Dr Drawings
Cr Bank

Question 10

Provision for depreciation

Answer 10

Like accumulated depreciation
Kena tolak dgn cost

Question 11

Net profit

Answer 11

= Gross profit - expense

Question 12

Refunds / dishonoured cheque double entry

Answer 12

Dr Receivable
Cr Bank