Professional Documents
Culture Documents
Introduction
In this chapter, youll learn about single entry
and incomplete records.
You will learn how to use the accounting
equation to identify the profit for a period
when only the opening and closing capital
figures and drawings are known.
You will also learn how to find the figure for
cash drawings or the figure for cash expenses
when all other cash receipts and payments
are known.
You will learn how to find the figures for
purchases and sales from incomplete records.
Introduction(Cont..)
Definition of Incomplete
Records
Records of business transactions are
incomplete on inadequate.
Some documents or information
might be partially or wholly stole,
lost, misplaced, destroyed or the
owner simply failed to keep proper
records.
IDENTIFY PROFIT
Identifying profits when opening and closing capital are
known
Lets look at a business where capital at the end of 20X4 was 20,000. During 20X5
there have been no drawings, and no extra capital has been brought in by the owner.
At the end of 20X5 the capital was 30,000.
This year
Last year
This
year
Profit
20,000 +
Drawings
This year
Capital
7,000
30,000
H Taylor
Statement of Affairs as at 31
December 20X5
RM
Fixed assets
Van
Fixtures
TOTAL
Current assets
Stock
Debtors
Bank
Cash
Less Current liabilities
Creditors
Net current assets
Less: Long-term
liability
Loan from J Ogden
Net assets
Financed by:
CapitalNote 1
RM
6,000
1,800
7,800
3,000
4,100
4,800
200
12,100
( 1,200)
10,900
18,700
( 3,500)
15,200
15,200