Incomplete Records Flashcards
1
Q
Op / Cl capital
A
Cl capital = op capital + PFY - drawings
2
Q
Statement of affairs
A
Assets = capital + liabilities
3
Q
Total sales
A
Cash sales + credit sales
4
Q
Credit sales ( t account)
A
TR receipts + Cl TR - op TR
5
Q
Total purchases
A
Cash Purchases + credit purchases
6
Q
Credit purchases (t account)
A
TP payments + Cl TP - op TP
7
Q
Gross profit mark up
A
Revenue (1XX%) = cost of sales (100%) + GP (XX%)
8
Q
Gross profit margin
A
Revenue (100%) = COS + GP
9
Q
Using average inventory
A
(Op inv + Cl inv) / 2
10
Q
Calculating purchases : turnover (times)
A
COS / average inventory
11
Q
Calculating purchases : turnover (days)
A
Average inv / COS X 365
