Incomplete Records

Topic 23: Incomplete Records and Missing Figures — 50 Hard MCQs

1. A trader’s opening assets were inventory $32 000, trade receivables $18 000, bank $4000 and equipment $70 000. Opening liabilities were trade payables $16 000 and loan $30 000.

At the year end, assets were inventory $38 000, trade receivables $24 000, bank $6000 and equipment $62 000. Liabilities were trade payables $20 000 and loan $25 000.

During the year, the owner introduced capital of $10 000, withdrew cash of $18 000 and took goods costing $2000.

What was the profit for the year?

A $7000
B $17 000
C $27 000
D $37 000

2. A trader had opening capital of $55 000 and closing capital of $70 000. During the year, drawings were $14 000 and additional capital introduced was $8000.

What was the profit for the year?

A $7000
B $15 000
C $21 000
D $37 000

3. A trader had opening capital of $92 000 and closing capital of $82 000. During the year, drawings were $20 000 and capital introduced was $5000.

What was the result for the year?

A $5000 profit
B $5000 loss
C $15 000 loss
D $35 000 loss

4. A trader’s closing capital was $130 000. Profit for the year was $42 000, drawings were $27 000 and capital introduced was $10 000.

What was opening capital?

A $91 000
B $95 000
C $105 000
D $189 000

5. Opening capital was $66 000. The business made a loss of $8000. The owner introduced capital of $12 000 and made drawings of $20 000.

What was closing capital?

A $38 000
B $50 000
C $58 000
D $90 000

6. A sales ledger control account has opening trade receivables of $20 000 and closing trade receivables of $28 000. Cash received from credit customers was $90 000. Sales returns were $4000, discount allowed was $2000 and irrecoverable debts were $1000.

What were credit sales?

A $85 000
B $97 000
C $105 000
D $117 000

7. Opening trade receivables were $35 000 and closing trade receivables were $29 000. Credit sales were $150 000, sales returns were $8000, discount allowed was $3000 and irrecoverable debts were $2000.

What cash was received from credit customers?

A $131 000
B $137 000
C $143 000
D $149 000

8. Opening trade payables were $26 000 and closing trade payables were $34 000. Payments to credit suppliers were $120 000, purchases returns were $5000, discount received was $3000 and contra entries were $2000.

What were credit purchases?

A $126 000
B $130 000
C $138 000
D $146 000

9. Opening trade payables were $42 000 and closing trade payables were $37 000. Credit purchases were $190 000, purchases returns were $9000, discount received was $4000 and contra entries were $3000.

What cash was paid to credit suppliers?

A $174 000
B $179 000
C $184 000
D $211 000

10. Opening trade payables were $31 000. Credit purchases were $160 000. Payments to suppliers were $145 000. Purchases returns were $6000 and discount received was $2000.

What were closing trade payables?

A $34 000
B $36 000
C $38 000
D $42 000

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

11. A trader had cash sales of $36 000. Opening trade receivables were $22 000 and closing trade receivables were $27 000. Cash received from credit customers was $116 000. Sales returns were $5000, discount allowed was $2500 and irrecoverable debts were $1500.

What were total sales?

A $130 000
B $150 000
C $166 000
D $202 000

12. A trader had cash purchases of $12 000. Opening trade payables were $18 000 and closing trade payables were $24 000. Payments to credit suppliers were $84 000. Purchases returns were $3000 and discount received was $1000.

What were total purchases?

A $94 000
B $100 000
C $106 000
D $118 000

13. Sales were $300 000 and gross profit margin was 30%. Opening inventory was $40 000, purchases were $190 000, purchases returns were $10 000 and carriage inwards was $5000.

What was closing inventory?

A $15 000
B $25 000
C $35 000
D $45 000

14. Sales were $240 000. The trader applies a mark-up of 25% on cost. Opening inventory was $30 000 and purchases were $170 000.

What was closing inventory?

A $8000
B $18 000
C $40 000
D $48 000

15. Opening inventory was $24 000, purchases were $130 000 and closing inventory was $34 000. Goods are sold at a mark-up of 50% on cost. Credit sales were $145 000.

What were cash sales?

A $25 000
B $35 000
C $45 000
D $60 000

16. Sales were $420 000 and gross profit margin was 25%. Net purchases were $290 000 and closing inventory was $45 000.

What was opening inventory?

A $40 000
B $50 000
C $70 000
D $85 000

17. Sales were $500 000. Mark-up was 25% on cost. Opening inventory was $60 000, closing inventory was $75 000, carriage inwards was $8000 and purchases returns were $5000.

What were gross purchases?

A $397 000
B $402 000
C $412 000
D $420 000

18. Opening inventory was $30 000. Purchases were $200 000. Sales were $300 000. Gross profit margin was 40%. Closing inventory counted was $42 000.

What was the cost of goods stolen?

A $8000
B $10 000
C $12 000
D $18 000

19. A trader had opening cash of $2000 and opening bank overdraft of $5000. During the year, receipts were cash sales $20 000, receipts from customers $75 000 and capital introduced $10 000. Payments were suppliers $60 000, expenses $18 000 and drawings $12 000.

What was the combined closing cash and bank balance?

A $12 000 debit
B $12 000 credit
C $18 000 debit
D $18 000 credit

20. A cash account shows opening cash $1500, cash sales $8000, cash received from receivables $12 000, cash banked $18 000, petty cash transfer $500 and wages paid in cash $2000.

What was closing cash?

A $500
B $1000
C $1500
D $3000

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

21. A trader’s cash sales according to till rolls were $25 000. Cash banked was $20 000. Cash expenses paid were $3000. Opening cash was $1000 and closing cash was $1500.

What amount of cash is missing?

A $500
B $1000
C $1500
D $2500

22. Opening assets were equipment at carrying value $60 000, inventory $30 000, trade receivables $20 000 and bank $5000. Opening liabilities were trade payables $18 000 and loan $40 000.

Closing assets were equipment at carrying value $60 000, inventory $34 000, trade receivables $25 000 and bank $3000. Closing liabilities were trade payables $20 000 and loan $35 000.

Capital introduced was $15 000. Drawings were cash $12 000 and goods $3000.

What was profit for the year?

A $5000
B $10 000
C $15 000
D $25 000

23. A trader’s opening capital was $90 000. Draft closing capital was $102 000, but closing inventory had been overstated by $3000. During the year, capital introduced was $10 000 and drawings were cash $18 000 plus goods $4000.

What was the correct profit?

A $18 000
B $21 000
C $24 000
D $27 000

24. A business paid rent of $15 000 during the year. At the start of the year, rent owing was $2000 and rent prepaid was $1000. At the end of the year, rent owing was $3500 and rent prepaid was $800.

What rent expense is charged to the income statement?

A $13 700
B $14 700
C $16 700
D $18 300

25. A business received commission of $25 000 during the year. At the start, commission accrued was $4000 and commission received in advance was $2000. At the end, commission accrued was $5000 and commission received in advance was $3000.

What commission income is recognised?

A $23 000
B $24 000
C $25 000
D $27 000

26. A sales ledger control account had opening debit balances of $40 000 and opening credit balances of $1000. Closing debit balances were $45 000 and closing credit balances were $2000. Cash received from customers was $160 000. Sales returns were $7000 and discounts allowed were $4000.

What were credit sales?

A $171 000
B $175 000
C $177 000
D $183 000

27. A purchases ledger control account had opening credit balances of $50 000 and opening debit balances of $2000. Closing credit balances were $55 000 and closing debit balances were $3000. Payments to suppliers were $180 000. Purchases returns were $8000 and discount received was $5000.

What were credit purchases?

A $185 000
B $190 000
C $197 000
D $203 000

28. A trader’s opening capital was $70 000, closing capital was $86 000, profit for the year was $30 000 and capital introduced was $8000.

What were drawings?

A $14 000
B $20 000
C $22 000
D $38 000

29. Opening capital was $100 000. Profit for the year was $40 000. Drawings were $24 000 and closing capital was $130 000.

What capital was introduced?

A $6000
B $14 000
C $26 000
D $46 000

30. Opening capital was $85 000 and closing capital was $75 000. During the year, the owner introduced $4000 and withdrew $18 000.

What was the result for the year?

A $4000 profit
B $4000 loss
C $24 000 profit
D $32 000 loss

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

31. Opening trade receivables were $24 000. Cash received from credit customers was $118 000. A dishonoured cheque was $2000. Sales returns were $6000, discount allowed was $3000, irrecoverable debts were $1000 and closing trade receivables were $30 000.

What were credit sales?

A $128 000
B $132 000
C $136 000
D $140 000

32. Opening trade receivables were $30 000. Credit sales were $150 000. A cheque for $4000 was dishonoured. Sales returns were $8000, discount allowed was $3000, irrecoverable debts were $2000 and closing trade receivables were $35 000.

What cash was received from credit customers?

A $132 000
B $136 000
C $140 000
D $148 000

33. Opening trade payables were $20 000. Credit purchases were $90 000. Interest charged by suppliers was $2000. Payments were $78 000, purchases returns were $4000 and discount received was $3000.

What were closing trade payables?

A $23 000
B $25 000
C $27 000
D $31 000

34. Opening trade payables were $27 000. Credit purchases were $140 000. Interest charged by suppliers was $1000. Purchases returns were $6000, discount received was $4000 and closing trade payables were $32 000.

What cash was paid to suppliers?

A $120 000
B $126 000
C $132 000
D $138 000

35. A trader had cash purchases of $8000. Opening trade payables were $15 000 and closing trade payables were $19 000. Payments to credit suppliers were $70 000. Purchases returns were $2000 and discount received was $1000.

What were total purchases?

A $77 000
B $81 000
C $85 000
D $93 000

36. Sales were $250 000. Expenses other than cost of sales were $40 000. Profit for the year was $35 000. Opening inventory was $28 000, purchases were $160 000 and carriage inwards was $2000.

What was closing inventory?

A $10 000
B $15 000
C $20 000
D $25 000

37. Sales were $180 000 and gross profit was $45 000. Purchases were $130 000, purchases returns were $4000, carriage inwards was $3000 and closing inventory was $20 000.

What was opening inventory?

A $18 000
B $22 000
C $26 000
D $30 000

38. Opening inventory was $20 000. Purchases were $100 000. Sales were $150 000 at a mark-up of 50% on cost. Closing inventory counted was $12 000.

What was the cost of missing inventory?

A $6000
B $8000
C $10 000
D $12 000

39. Goods costing $8000 were stolen. The insurance company agreed to pay compensation of $5000.

What is the net effect on profit?

A profit decreases by $3000
B profit decreases by $5000
C profit decreases by $8000
D profit increases by $5000

40. A trader had cash sales of $8000 which were taken by the owner for personal use and not recorded.

What is the effect before correction?

A profit understated and drawings understated
B profit overstated and drawings overstated
C profit understated and drawings overstated
D profit overstated and drawings understated

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

41. At the year end, assets excluding inventory were $75 000 and liabilities were $28 000. Closing capital was $60 000.

What was closing inventory?

A $13 000
B $32 000
C $47 000
D $88 000

42. A trader’s assets were $100 000 and liabilities excluding bank overdraft were $30 000. Capital was $65 000.

What was the bank overdraft?

A $5000
B $35 000
C $65 000
D $95 000

43. Goods costing $3000 taken by the owner for personal use were not recorded.

What is the effect before correction?

A profit overstated and drawings understated
B profit understated and drawings understated
C profit understated and drawings overstated
D profit unaffected and drawings understated

44. A trader’s opening capital was $120 000. Draft closing capital before depreciation adjustment was $150 000. Depreciation of $8000 had been omitted. Capital introduced was $20 000 and drawings were $25 000.

What was the correct profit?

A $19 000
B $27 000
C $35 000
D $43 000

45. An expense shown in the income statement is $18 000. Opening accrued expense was $2000, closing accrued expense was $5000, opening prepaid expense was $4000 and closing prepaid expense was $1000.

What cash was paid for the expense?

A $10 000
B $12 000
C $18 000
D $24 000

46. Income shown in the income statement is $30 000. Opening accrued income was $3000, opening income received in advance was $4000, closing accrued income was $5000 and closing income received in advance was $2000.

What cash was received for the income?

A $24 000
B $26 000
C $30 000
D $34 000

47. A trader does not keep proper records. Opening capital was $64 000. Closing assets were $130 000 and closing liabilities were $52 000. During the year, drawings were $16 000 and capital introduced was $6000.

What was profit for the year?

A $18 000
B $20 000
C $24 000
D $36 000

48. A trader’s opening capital was $88 000. Closing assets were $150 000 and closing liabilities were $70 000. During the year, drawings were $19 000 and capital introduced was $5000.

What was the result for the year?

A $6000 profit
B $6000 loss
C $12 000 profit
D $22 000 loss

49. A business has incomplete records. Which item is most likely to be calculated using a sales ledger control account?

A credit sales
B depreciation rate
C owner’s capital introduced only
D mark-up percentage only

50. Which statement about incomplete records is correct?

A profit can be calculated only if a trial balance exists
B statement of affairs can be used to calculate capital
C drawings are added to closing capital to calculate closing assets
D credit sales can never be calculated from receivables information

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

1. B — $17 000

• Opening capital = 124 000 – 46 000 = $78 000

• Closing capital = 130 000 – 45 000 = $85 000

• Profit = closing capital – opening capital – capital introduced + drawings

• Drawings = 18 000 cash + 2000 goods = $20 000

• Profit = 85 000 – 78 000 – 10 000 + 20 000

• = $17 000

2. C — $21 000

• Profit = closing capital – opening capital – capital introduced + drawings

• = 70 000 – 55 000 – 8000 + 14 000

• = $21 000

3. A — $5000 profit

• Profit/loss = closing capital – opening capital – capital introduced + drawings

• = 82 000 – 92 000 – 5000 + 20 000

• = $5000 profit

4. C — $105 000

• Opening capital = closing capital – profit – capital introduced + drawings

• = 130 000 – 42 000 – 10 000 + 27 000

• = $105 000

5. B — $50 000

• Closing capital = opening capital – loss + capital introduced – drawings

• = 66 000 – 8000 + 12 000 – 20 000

• = $50 000

6. C — $105 000

• Credit sales = closing receivables – opening receivables + cash received + returns + discount + bad debts

• = 28 000 – 20 000 + 90 000 + 4000 + 2000 + 1000

• = $105 000

7. C — $143 000

• Cash received = opening receivables + credit sales – returns – discount – bad debts – closing receivables

• = 35 000 + 150 000 – 8000 – 3000 – 2000 – 29 000

• = $143 000

8. C — $138 000

• Credit purchases = closing payables – opening payables + payments + returns + discount + contra

• = 34 000 – 26 000 + 120 000 + 5000 + 3000 + 2000

• = $138 000

9. B — $179 000

• Cash paid = opening payables + credit purchases – returns – discount – contra – closing payables

• = 42 000 + 190 000 – 9000 – 4000 – 3000 – 37 000

• = $179 000

10. C — $38 000

• Closing payables = opening payables + credit purchases – payments – returns – discount

• = 31 000 + 160 000 – 145 000 – 6000 – 2000

• = $38 000

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

11. C — $166 000

• Credit sales = 27 000 – 22 000 + 116 000 + 5000 + 2500 + 1500

• = $130 000

• Total sales = cash sales + credit sales

• = 36 000 + 130 000

• = $166 000

12. C — $106 000

• Credit purchases = 24 000 – 18 000 + 84 000 + 3000 + 1000

• = $94 000

• Total purchases = credit purchases + cash purchases

• = 94 000 + 12 000

• = $106 000

13. A — $15 000

• Sales = $300 000

• Gross profit margin = 30%, so cost of sales = 70% × 300 000 = $210 000

• Cost of sales = opening inventory + net purchases + carriage inwards – closing inventory

• 210 000 = 40 000 + 180 000 + 5000 – closing inventory

• Closing inventory = $15 000

14. A — $8000

• Mark-up = 25%, so sales = 125% of cost

• Cost of sales = 240 000 / 1.25 = $192 000

• Closing inventory = opening inventory + purchases – cost of sales

• = 30 000 + 170 000 – 192 000

• = $8000

15. B — $35 000

• Cost of sales = 24 000 + 130 000 – 34 000 = $120 000

• Mark-up = 50%, so sales = 120 000 × 1.5 = $180 000

• Cash sales = total sales – credit sales

• = 180 000 – 145 000

• = $35 000

16. C — $70 000

• Gross profit margin = 25%, so cost of sales = 75% × 420 000 = $315 000

• Cost of sales = opening inventory + net purchases – closing inventory

• 315 000 = opening inventory + 290 000 – 45 000

• Opening inventory = $70 000

17. C — $412 000

• Mark-up = 25%, so cost of sales = 500 000 / 1.25 = $400 000

• Cost of sales = opening inventory + gross purchases – purchases returns + carriage inwards – closing inventory

• 400 000 = 60 000 + purchases – 5000 + 8000 – 75 000

• Gross purchases = $412 000

18. A — $8000

• Gross profit margin = 40%, so cost of sales = 60% × 300 000 = $180 000

• Goods available = opening inventory + purchases = 30 000 + 200 000 = $230 000

• Expected closing inventory = 230 000 – 180 000 = $50 000

• Actual closing inventory = $42 000

• Goods stolen = 50 000 – 42 000

• = $8000

19. A — $12 000 debit

• Opening combined balance = cash 2000 – bank overdraft 5000 = $3000 credit

• Total receipts = 20 000 + 75 000 + 10 000 = $105 000

• Total payments = 60 000 + 18 000 + 12 000 = $90 000

• Closing balance = -3000 + 105 000 – 90 000

• = $12 000 debit

20. B — $1000

• Closing cash = opening cash + cash sales + cash received – cash banked – petty cash transfer – wages paid

• = 1500 + 8000 + 12 000 – 18 000 – 500 – 2000

• = $1000

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

21. C — $1500

• Expected closing cash = opening cash + cash sales – cash banked – cash expenses

• = 1000 + 25 000 – 20 000 – 3000

• = $3000

• Actual closing cash = $1500

• Missing cash = 3000 – 1500

• = $1500

22. B — $10 000

• Opening capital = opening assets – opening liabilities

• = 115 000 – 58 000 = $57 000

• Closing capital = closing assets – closing liabilities

• = 122 000 – 55 000 = $67 000

• Drawings = 12 000 + 3000 = $15 000

• Profit = 67 000 – 57 000 – 15 000 + 15 000

• = $10 000

23. B — $21 000

• Draft closing capital = $102 000

• Inventory overstated by $3000, so corrected closing capital = $99 000

• Drawings = 18 000 + 4000 = $22 000

• Profit = closing capital – opening capital – capital introduced + drawings

• = 99 000 – 90 000 – 10 000 + 22 000

• = $21 000

24. C — $16 700

• Rent expense = paid – opening owing + opening prepaid + closing owing – closing prepaid

• = 15 000 – 2000 + 1000 + 3500 – 800

• = $16 700

25. C — $25 000

• Income = received – opening accrued + opening advance + closing accrued – closing advance

• = 25 000 – 4000 + 2000 + 5000 – 3000

• = $25 000

26. B — $175 000

• Credit sales = opening credit + cash received + returns + discounts + closing debit – opening debit – closing credit

• = 1000 + 160 000 + 7000 + 4000 + 45 000 – 40 000 – 2000

• = $175 000

27. C — $197 000

• Credit purchases = opening debit + payments + returns + discount + closing credit – opening credit – closing debit

• = 2000 + 180 000 + 8000 + 5000 + 55 000 – 50 000 – 3000

• = $197 000

28. C — $22 000

• Drawings = opening capital + profit + capital introduced – closing capital

• = 70 000 + 30 000 + 8000 – 86 000

• = $22 000

29. B — $14 000

• Capital introduced = closing capital – opening capital – profit + drawings

• = 130 000 – 100 000 – 40 000 + 24 000

• = $14 000

30. A — $4000 profit

• Profit/loss = closing capital – opening capital – capital introduced + drawings

• = 75 000 – 85 000 – 4000 + 18 000

• = $4000 profit

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

31. B — $132 000

• Dishonoured cheque increases receivables.

• Credit sales = closing receivables – opening receivables – dishonoured cheque + cash received + returns + discount + bad debts

• = 30 000 – 24 000 – 2000 + 118 000 + 6000 + 3000 + 1000

• = $132 000

32. B — $136 000

• Cash received = opening receivables + credit sales + dishonoured cheque – returns – discount – bad debts – closing receivables

• = 30 000 + 150 000 + 4000 – 8000 – 3000 – 2000 – 35 000

• = $136 000

33. C — $27 000

• Closing payables = opening payables + credit purchases + interest charged – payments – returns – discount

• = 20 000 + 90 000 + 2000 – 78 000 – 4000 – 3000

• = $27 000

34. B — $126 000

• Cash paid = opening payables + credit purchases + interest charged – returns – discount – closing payables

• = 27 000 + 140 000 + 1000 – 6000 – 4000 – 32 000

• = $126 000

35. C — $85 000

• Credit purchases = closing payables – opening payables + payments + returns + discount

• = 19 000 – 15 000 + 70 000 + 2000 + 1000

• = $77 000

• Total purchases = credit purchases + cash purchases

• = 77 000 + 8000

• = $85 000

36. B — $15 000

• Profit = sales – cost of sales – expenses

• 35 000 = 250 000 – cost of sales – 40 000

• Cost of sales = $175 000

• Cost of sales = opening inventory + purchases + carriage inwards – closing inventory

• 175 000 = 28 000 + 160 000 + 2000 – closing inventory

• Closing inventory = $15 000

37. C — $26 000

• Cost of sales = sales – gross profit

• = 180 000 – 45 000 = $135 000

• Net purchases plus carriage = 130 000 – 4000 + 3000 = $129 000

• Cost of sales = opening inventory + 129 000 – 20 000

• Opening inventory = $26 000

38. B — $8000

• Mark-up = 50%, so cost of sales = 150 000 / 1.5 = $100 000

• Goods available = 20 000 + 100 000 = $120 000

• Expected closing inventory = 120 000 – 100 000 = $20 000

• Actual closing inventory = $12 000

• Missing inventory = $8000

39. A — profit decreases by $3000

• Goods stolen = $8000 loss

• Insurance compensation = $5000 income

• Net loss = 8000 – 5000

• Profit decreases by $3000

40. A — profit understated and drawings understated

• Cash sales should increase sales/profit.

• Owner taking cash should be recorded as drawings.

• If not recorded:

  • sales understated

  • profit understated

  • drawings understated

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.

41. A — $13 000

• Capital = assets – liabilities

• 60 000 = 75 000 + inventory – 28 000

• 60 000 = 47 000 + inventory

• Inventory = $13 000

42. A — $5000

• Assets = liabilities + capital

• 100 000 = 30 000 + bank overdraft + 65 000

• Bank overdraft = $5000

43. B — profit understated and drawings understated

• Goods taken by owner should be:

  • debit drawings

  • credit purchases

• If not recorded:

  • purchases/cost of sales overstated

  • profit understated

  • drawings understated

44. B — $27 000

• Draft closing capital = $150 000

• Depreciation omitted = reduce assets/capital by $8000

• Correct closing capital = 142 000

• Profit = closing capital – opening capital – capital introduced + drawings

• = 142 000 – 120 000 – 20 000 + 25 000

• = $27 000

45. B — $12 000

• Expense = cash paid – opening accrual + closing accrual + opening prepayment – closing prepayment

• 18 000 = cash paid – 2000 + 5000 + 4000 – 1000

• 18 000 = cash paid + 6000

• Cash paid = $12 000

46. B — $26 000

• Income = cash received – opening accrued + opening advance + closing accrued – closing advance

• 30 000 = cash received – 3000 + 4000 + 5000 – 2000

• 30 000 = cash received + 4000

• Cash received = $26 000

47. C — $24 000

• Closing capital = closing assets – closing liabilities

• = 130 000 – 52 000 = $78 000

• Profit = closing capital – opening capital – capital introduced + drawings

• = 78 000 – 64 000 – 6000 + 16 000

• = $24 000

48. A — $6000 profit

• Closing capital = closing assets – closing liabilities

• = 150 000 – 70 000 = $80 000

• Profit/loss = closing capital – opening capital – capital introduced + drawings

• = 80 000 – 88 000 – 5000 + 19 000

• = $6000 profit

49. A — credit sales

• Credit sales can be calculated using a sales ledger control account.

• The control account uses opening receivables, closing receivables, cash received, returns, discounts and bad debts.

50. B — statement of affairs can be used to calculate capital

• In incomplete records, a statement of affairs lists assets and liabilities.

• Capital = assets – liabilities.

• Profit can then be found by comparing opening and closing capital after adjusting for drawings and capital introduced.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.