Incomplete records：練習題

A sole trader does not maintain a full set of double entry accounting records. Which document is prepared to estimate the value of the owner’s capital at a specific date?

How is the opening capital of a business calculated when using incomplete records?

Which of the following is a disadvantage of not maintaining a full set of double-entry accounting records?

State two disadvantages to a sole trader of not maintaining a full set of double-entry accounting records.

Jane operates a small business and does not maintain a full set of accounting records. The following information is available:

Balances at 1 January 2023:

• Non-current assets: \(\$30,000\)
• Inventory: \(\$8,500\)
• Trade receivables: \(\$4,200\)
• Cash at bank: \(\$1,800\)
• Trade payables: \(\$2,500\)
• Loan from bank: \(\$5,000\)

Balances at 31 December 2023:

• Non-current assets: \(\$27,000\)
• Inventory: \(\$9,100\)
• Trade receivables: \(\$5,100\)
• Cash at bank: \(\$2,300\)
• Trade payables: \(\$3,100\)
• Loan from bank: \(\$5,000\)

During the year, Jane introduced additional capital of \(\$2,000\) and took drawings of \(\$4,500\).

You are required to calculate Jane's profit or loss for the year ended 31 December 2023.

Sarah runs a trading business and maintains incomplete records. The following information has been extracted for the year ended 31 March 2024:

Balances:

• Trade Receivables at 1 April 2023: \(\$8,000\)
• Trade Receivables at 31 March 2024: \(\$9,500\)
• Trade Payables at 1 April 2023: \(\$6,000\)
• Trade Payables at 31 March 2024: \(\$7,000\)
• Inventory at 1 April 2023: \(\$10,000\)
• Inventory at 31 March 2024: \(\$11,500\)

Cash and Bank Summary for the year ended 31 March 2024:

• Receipts from trade receivables: \(\$60,000\)
• Payments to trade payables: \(\$45,000\)
• Cash sales: \(\$15,000\)
• Cash purchases: \(\$8,000\)

Additional information:

• All sales are made at a gross profit margin of 25%.

You are required to calculate for the year ended 31 March 2024:

(a) The total credit sales.

(b) The total credit purchases.

(c) The total sales.

(d) The cost of sales.

(e) The gross profit.