Incomplete Records for success
Incomplete records is where the accounting documents are incomplete or missing this is most common in :1)small businesses-where the small amount of transactions occuring do not warrant the use of a double entry book keeping system(e.g a window cleaning business)
2)A sole trader- who doesnt have the knowledge or expertise to run a double entry book keeping system
What could we be asked to find the missing figures to in the exam:
i will explain to you how to figure out each of the above figures on the following set of cards >>>>>
How to find the Missing Sales Figure?
HOW TO FIND THE MISSING SALES FIGURE?
IN THE EXAM THEY WILL MOST PROBABLY ASK YOU TO DO A TRADING AND PROFIT AND LOSS ACCOUNT.IN ORDER TO DO THIS YOU WILL NEED THE SALES FIGURE:
1)LOOK FOR THE OPENING DEBTORS AMOUNT
2)LOOK FOR THE CLOSING DEBTORS AMOUNT
3)LOOK FOR THE AMOUNT OF CASH RECEIVED FROM DEBTORS
How to find the Missing Sales Figure?(CARD 2)
cash received from debtors
cr side total minus dr side total = missing sales figure!!!
where do the figures come from?
bal b/d is the opening debtors figure that you found from the question
cash received from debtors is usually on the debit side of a bank account
bal c/d is the closing debtors figure that you found out from the question
How to find the Missing Sales Figure?(CARD 3)
ok so youve entered the figures onto the correct side of the t-account but i might be right in saying that you think we havent put the sales figure in yet???
well to do this you add up the CR side of the t-account then minus it from the DR side
EG: cr=250 dr=100 (250-100)
this will give you your sales figure and voila!!!
want to see it in action look below
Opening debtors = 500 closing debtors=350 cash received=100
draw a t-account
stage 2: enter the figures on the right side
stage 3: minus the cr side from the dr side to find the sales