AccountingCode 7707
Incomplete records
What this topic asks you to be able to do
- the reasons businesses maintain several kinds of accounting records instead of applying the full double entry system
- the benefits and drawbacks of not keeping an entire set of accounting records
- how to draw up statements of affairs at the beginning and at the end of a period
- the way to work out the profit or loss for a year by looking at how capital has changed over the period
- the way to work out trade payables, trade receivables, purchases, sales, gross profit and other figures when the information is incomplete
- how to draw up a statement of profit or loss and a statement of financial position working from incomplete records
- how to adjust financial statements in the ways set out in 5.1 (sole traders)
- how to find missing figures by using mark-up, margin and inventory turnover