INCOMPLETE RECORDS

LFQ :
How would you calculate Profit when no details
about Purchases or Sales are given
PROFIT = CLOSING CAPITAL – OPENING CAPITAL

Opening capital –
The capital with which the owner starts the business is called
opening capital OR It is closing capital of previous year.

Closing capital –
The capital which remains with the owner at the end of financial
year is called opening capital.
AFL
What are the two important things that you need
to find out the profit
in case of incomplete records?
AFL
When closing and opening capital is not given to you directly, then what
you’ll do?

In case of incomplete records, instead of statement of financial

position , we prepare ____________________________
 STATEMENT OF AFFAIRS
It is not possible to prepare income statement
with Assets and liabilities.

These Assets and liabilities are listed in

Statement of Affairs which is similar to a
Statement of Financial Position.
Question 1: Class work Required:
A] Opening statement Affair as on
Find opening capital and closing capital from the a) Opening statement of
following details for the year ending 31 March 2022 Affair. Liabilities $ Assets $
for Mr. Mehta b) Closing statement of Affair.
Details 31st March 31st March c) Calculate the profit for the
2021 2021 year.
Vehicle Cost 20 000 30 000
Less: (5 000) (6 000)
Depreciation
provision
Land 25 000 25 000
Premises Cost 15 000 17 000
Less: (15 000) (2 000)
Depreciation
provision
Trade 1 400 1 600
Receivable
Trade Payable 2 000 2 600
Outstanding 200 300
Salary
Advance wages 100 150
Inventories 4 000 5 000
Bank 7 000 6 500
Adjustments:

1. Goods taken home for domestic use $1 000.

2. Allow interest on Capital @6%.
3. Create R.B.D. D on debtors at 1%. There are bad debts of $400.
Question 1: Class work Required:
A] Opening statement Affair as on
Find opening capital and closing capital from the a) Opening statement of
following details for the year ending 31 March 2022 Affair. Liabilities $ Assets $
for Mr. Mehta b) Closing statement of Affair. 74350 24 000
Details 31st March 31st March c) Calculate the profit for the
2021 2021 year. 25 000
Vehicle Cost 20 000 30 000
15 000
Less: (5 000) (6 000)
Depreciation 2600 1600
provision
Land 25 000 25 000 300 150
Premises Cost 15 000 17 000 5 000
Less: (15 00) (2 000)
Depreciation 6 500
provision
Trade 1 400 1 600
Receivable
Trade Payable 2 000 2 600
Outstanding 200 300
Salary
Advance wages 100 150
Inventories 4 000 5 000
Bank 7 000 6 500
Adjustments:

1. Goods taken home for domestic use $1 000.

2. Allow interest on Capital @6%.
3. Create R.B.D. D on debtors at 1%. There are bad debts of $400.
Question 1: Class work Required:
A] Closing statement Affair as on
Find opening capital and closing capital from the a) Opening statement of
following details for the year ending 31 March 2022 Affair. Liabilities $ Assets $
for Mr. Mehta b) Closing statement of Affair.
Details 31st March 31st March c) Calculate the profit for the
2021 2021 year.
Vehicle Cost 20 000 30 000
Less: (5 000) (6 000)
Depreciation
provision
Land 25 000 25 000
Premises Cost 15 000 17 000
Less: (15 00) (2 000)
Depreciation
provision
Trade 1 400 1 600
Receivable
Trade Payable 2 000 2 600
Outstanding 200 300
Salary
Advance wages 100 150
Inventories 4 000 5 000
Bank 7 000 6 500
Adjustments:

1. Goods taken home for domestic use $1 000.

2. Allow interest on Capital @6%.
3. Create R.B.D. D on debtors at 1%. There are bad debts of $400.
Question 1: Class work Required:
A] Closing statement Affair as on
Find opening capital and closing capital from the a) Opening statement of
following details for the year ending 31 March 2022 Affair. Liabilities $ Assets $
for Mr. Mehta b) Closing statement of Affair.
Details 31st March 31st March c) Calculate the profit for the
2021 2021 year.
Vehicle Cost 20 000 30 000
Less: (5 000) (6 000)
Depreciation
provision
Land 25 000 25 000
Premises Cost 15 000 17 000
Less: (15 000) (2 000)
Depreciation
provision
Trade 1 400 1 600
Receivable
Trade Payable 2 000 2 600
Outstanding 200 300
Salary
Advance wages 100 150
Inventories 4 000 5 000
Bank 7 000 6 500
Adjustments:

1. Goods taken home for domestic use $1 000.

2. Allow interest on Capital @6%.
3. Create R.B.D. D on debtors at 1%. There are bad debts of $400.
Question 1: Class work Required:
A] Closing statement Affair as on
Find opening capital and closing capital from the a) Opening statement of
following details for the year ending 31 March 2022 Affair. Liabilities $ Assets $
for Mr. Mehta b) Closing statement of Affair.
Details 31st March 31st March c) Calculate the profit for the
2021 2021 year.
Vehicle Cost 20 000 30 000
Less: (5 000) (6 000)
Depreciation
provision
Land 25 000 25 000
Premises Cost 15 000 17 000
Less: (15 000) (2 000)
Depreciation
provision
Trade 1 400 1 600
Receivable
Trade Payable 2 000 2 600
Outstanding 200 300
Salary
Advance wages 100 150
Inventories 4 000 5 000
Bank 7 000 6 500
Adjustments:

1. Goods taken home for domestic use $1 000.

2. Allow interest on Capital @6%.
3. Create R.B.D. D on debtors at 1%. There are bad debts of $400.
Question 2: Home Assignment
A] Opening statement Affair as on
Find opening capital and closing capital from the following Liabilities $ Assets $
details for the year ending 31 March 2022 for Mrs. Kaya.
Details 31st March 2020 31st March 2021
Land 1 000 1 000
Equipment 8 000 9 000
Less: (1 200) (1 500)
depreciation
provision
Inventory 500 900
Trade 1 500 2 000
Receivable
Trade payable 800 1 100
Cash and bank 500 Debit 1 300 Credit

Adjustments:
1. R.B.D. D at 2%. Mr. Sam is declared bankrupt for $300.
2. Goods introduced by the owner $700.
Required:
a) Opening statement of Affair.
b) Closing statement of Affair.
https://quizizz.com/admin/quiz/621c44060dcb29001d112eb7?
c) Calculate the profit for the year. source=quiz_share
Question 2: Home Assignment
A] Opening statement Affair as on
Find opening capital and closing capital from the following Liabilities $ Assets $
details for the year ending 31 March 2022 for Mrs. Kaya.
Details 31st March 2021 31st March 2021
Land 1 000 1 000
Equipment 8 000 9 000
Less: (1 200) (1 500)
depreciation
provision
Inventory 500 900
Trade 1 500 2 000
Receivable
Trade payable 800 1 100
Cash and bank 500 Debit 1 300 Credit

Adjustments:
1. R.B.D. D at 2%. Mr. Sam is declared bankrupt for $300.
2. Goods introduced by the owner $700.
Question 2: Home Assignment
B] Closing statement Affair as on
Find opening capital and closing capital from the following Liabilities $ Assets $
details for the year ending 31 March 2022 for Mrs. Kaya.
Details 31st March 2020 31st March 2021
Land 1 000 1 000
Equipment 8 000 9 000
Less: (1 200) (1 500)
depreciation
provision
Inventory 500 900
Trade 1 500 2 000
Receivable
Trade payable 800 1 100
Cash and bank 500 Debit 1 300 Credit

Adjustments:
1. R.B.D. D at 2%. Mr. Sam is declared bankrupt for $300.
2. Goods introduced by the owner $700.
Required:
a) Opening statement of Affair.
b) Closing statement of Affair.
c) Calculate the profit for the year.
Question 2: Home Assignment
C] Statement of Profit
Find opening capital and closing capital from the following Details $ $

details for the year ending 31 March 2022 for Mrs. Kaya.
Details 31st March 2020 31st March 2021
Land 1 000 1 000
Equipment 8 000 9 000
Less: (1 200) (1 500)
depreciation
provision
Inventory 500 900
Trade 1 500 2 000
Receivable
Trade payable 800 1 100
Cash and bank 500 Debit 1 300 Credit

Adjustments:
1. R.B.D. D at 2%. Mr. Sam is declared bankrupt for $300.
2. Goods introduced by the owner $700.
Required:
a) Opening statement of Affair.
b) Closing statement of Affair.
c) Calculate the profit for the year.
Sam does not keep proper accounting records.
Details $ $
He provided the following information about his
assets and liabilities at 31 December 2011.

a) Calculate the opening capital as 1

Jan 2012.(Opening statement of
affairs)
Details $ $
Format of capital Account:- (Horizontal) Vertical Format:
$
Dr. Capital A/C Cr.
Closing capital XXX
Balance b/d (+) Drawings XX
Drawings (opening capital)
XXX
( - ) Additional capital (XX)
Opening capital (XX)
Cash / Bank
(Additional Profit for the year XXXX
Balance c/d capital)
(closing capital)
Profit

CCD - AC – OC = P
LETS DO WITH FEW EXAMPLES:
Dr. Capital A/C Cr.
EG: 1) Opening capital 6L
Drawings 2L
Additional capital 1L
Closing capital 12L
Calculate Profit:

Can you prepare a vertical statement to calculate Profit/ Loss ?

Dr. Capital A/C Cr.

Closing capital 12 Less:- Additional capital 1

Ada:- Drawings 2 Opening capital 6
Profit for the year 7
14 14
 LETS DO WITH FEW EXAMPLES: Dr. Capital A/C Cr.

EG: 1) Opening capital 6L

Drawings 2L
Additional capital 1L
Closing capital 12L
Calculate Profit:

Can you prepare a vertical statement to calculate Profit/ Loss ?

Dr. Capital A/C Cr.

Closing capital 12 Less:- Additional capital 1

Ada:- Drawings 2 Opening capital 6
Profit for the year 7
14 14
EG: 2) Opening capital 13L Dr. Capital A/C Cr.
Drawings 5L
Additional capital 2L
Closing capital 4L
Calculate Profit/ Loss for the year:
SELF EVALUATE

Can you prepare a vertical statement to calculate Profit/ Loss ?

Dr. Capital A/C Cr.

Closing capital Less:- Additional capital

Ada:- Drawings Opening capital
Profit for the year
PLENARY
The following information is taken from a sole trader’s accounts:
Opening capital $12 000
Closing capital $13 800
Net Profit $3 000
What are the trader’s drawings?
A $1 200 B $1 800
C $4 800 D $22 800
Answer: A $1 200
PLENARY
2) A company has capital of $24 400. Its non – current assets are $16 100 and its
current liabilities are $4 500. There are no non – current liabilities.
What is the amount of its current assets?
A $8 300 B $11 600
C $12 800 D $28 900
Answer: C $12 800
PLENARY
3) The following information is taken from a trader’s accounts.

Capital at the end of the year 21 000

Capital at the beginning of the year 10 000
Drawings during the year 3 000
Capital introduced during the year 8 000

What is the trader’s net profit for the year?

A nil B $3 000 C $6 000 D $11 000
Answer: C $6 000
PLENARY
The following information is taken from a sole trader’s accounts:
Answer: D $6 000
6) The following information relates to a business:

$
Capital at 1 January 20 000
Capital at 31 December 32 000
Drawings during the year 10 000
Additional Capital brought in during the year 7 000

What is the net profit for the year?

A $9 000 B $12 000 C $15 000 D $22 000

Answer: C $15 000

7) A trader has opening capital of $85 000 and closing capital of $107 000. She has drawings
of $13 000 during the year. What is her net profit?

A $9 000 B $13 000

C $22 000 D $35 000

Answer: D $35 000

8) At the end of his financial year a sole trader’s records show that his capital has decreased
by $5 000. His drawings were $14 000.

What is the amount of his profit or loss for the year?

A $5 000 loss B $5 000 profit
C $9 000 loss D $9 000 profit

Answer: D $9 000 profit

HL 1
The following Information is taken from a sole trader’s accounts.
$
Capital at 31 December 20X8 21 000
Capital at 1 January 20X8 10 000
Drawings during 20X8 3 000
Capital introduced during 20X8 8 000

What is the sole trader’s net profit for the year ended 31 December 20X8
HL 2
The accounts of a sole trader show the following.

Beginning of year ($) End of year ($)

Non – current assets 13 700 11 900
Current assets 6 200 9 500
Current liabilities 4 100 3 800
Bank loan (5 year) 4 000
What is the net profit or loss for the year?
STARTER
How do you prepare a How do you prepare a
Customer / Debtor / Trade Receivable Account ? Supplier / Creditor / Trade Payable Account ?
.
Nominal Ledger/General Ledger
Sales ledger control account (Total Trade Receivables account)

Date Details $ Date Details $

Balance b/d(common) Xx Balance b/d (uncommon) Xx

Credit sales Xx Sales return Xx

xx
Bank/cash
Bank(dis check) Xx Discount allowed Xx

Bank/cash (refunds) Xx Irrecoverable debts Xx

Interest charged xx Purchase ledger control Xx

account(contra entry)
Balance c/d(uncommon xx Balance c/d(common)(trade xx
recivables)

xxx xxx

Balance b/d(common) xx Balance b/d(uncommon xx

 Nominal Ledger
Purchase ledger control account (Total trade payables account)
Date Details $ Date Details $
Balance b/d(uncommon) Balance b/d(common)
Purchase returns Credit purchases
Cash/ bank Bank (dishonoured cheque)
Discount received Cash / bank(refunds)
Sales ledger control Interest charged on overdue
account(contra entry) amount

Balance c/d
(common)(trade payable)
Balance c/d(uncommon)
xxx xxx

Balance b/d(uncommon) Balance b/d(common)

Question 3: Class Work: Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments:
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work: Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments:
B. Cost of Goods Sold
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work Pg 170 Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments: Trade Payables
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work Pg 170 Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments:
COST OF GOODS SOLD
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work Pg 170 Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments: COST OF GOODS SOLD
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work Pg 170 Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments:
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
RECALL
How do I find COGS ?

COST OF GOODS SOLD

Opening Inventory XXX
Add : Purchases XXX
Less: Purchases Return ( XX) XXX
XX
Less: Closing Inventory ( XXX)
COST OF GOODS SOLD XXXX
Question 3: Class Work: Trade payables on 28th February 2022: $________________
Balances as on 29th Feb 2021 28th Feb 2022 Trade Payable
Petty cash 600 600
Land 5 000 5 000
Trade Receivable 16 000 ?
Trade Payable 14 000 ?
Cash 500 600
Bank 2 900 Debit 3 400 Credit
Bank loan 1 200 1 900
Transportation 8 000 ?
Equipment
Inventories 2 000 3 000

Adjustments:
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work: 44 500
Trade payables on 28th February 2022: $________________
Balances as on 29th Feb 2021 28th Feb 2022 Trade Payable
Petty cash 600 600
Land 5 000 5 000 Discount received 2300 Bal b/d 14 000
Trade Receivable 16 000 ? Purchase Returns 4000 Credit Purchases 38 000
Trade Payable 14 000 ? Cash 1200
Cash 500 600
44 500
Balance c/d 44 500
Bank 2 900 Debit 3 400 Credit 54000 54000
Bank loan 1 200 1 900
Transportation 8 000 ? B) Cost of Goods Sold
Equipment Opening Inventory 2000
Inventories 2 000 3 000 Purchases ( 3000 + 38 000) 41 000
Adjustments: Less: Purchase Returns (4 000) 37000

1. Cash Sales $8 500. 39 000

2. Cash purchase $3 000 and credit purchases $38 000. Less: Closing Inventory (3000)
3. Depreciation on all non- current assets @4%. Cost of Goods Sold 36 000
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work: c) Net Sales for the year ending 28th February 2022
Balances as on 29th Feb 2021 28th Feb 2022
Petty cash 600 600
Opening Inventory 2000
Land 5 000 5 000 Purchases ( 3000 + 38 000) 41 000
Trade Receivable 16 000 ?
Trade Payable 14 000 ?
Less: Purchase Returns (4 000) 37000
44 500
Cash 500 600 39 000
Bank 2 900 Debit 3 400 Credit
Bank loan 1 200 1 900 Less: Closing Inventory (3000)
Transportation 8 000 ? Cost of Goods Sold 36 000
Equipment
Inventories 2 000 3 000 21 600
Add : Gross Profit ( 60/100 * 36 000) E
Adjustments: NET SALES 57 600

1. Cash Sales $8 500. Can you recall the formula for calculating Net Sales?
2. Cash purchase $3 000 and credit purchases $38 000. Sales : Cash Sales 8 500
3. Depreciation on all non- current assets @4%. Credit Sales ( 60 800 – 8 500) 52 300 60 800
4. Grossprofit
Gross profitat
at60%
60%on
oncost/
cost/Gross
Grossprofit
profitmark
markup
up60%
60% Less : Sales Return (3200)
5. Discount allowed$2 200 and discount received $ 2 300. Net Sales 57 600
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work: f) Trade Receivable Account
Balances as on
th
29 Feb 2021 28th Feb 2022 Bal b/d 16 000 Discount Allowed 2 200
Petty cash 600 600 Credit Sales 52 300 Sales Return 3 200
Land 5 000 5 000 Bad Debts 500
Trade Receivable 16 000 ? 61 000 Cash / Bank 1 400

Trade Payable 14 000 ? 44 500

Bal C/d 61 000
68 300 68 300
Cash 500 600
Bank 2 900 Debit 3 400 Credit Liability
Bank loan 1 200 1 900
Transportation 8 000 ?
Equipment 7680
Inventories 2 000 3 000
Adjustments:
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work: f) Trade Receivable Account
Balances as on
th
29 Feb 2021 28th Feb 2022 Bal b/d 16 000 Discount Allowed 2 200
Petty cash 600 600 Credit Sales 52 300 Sales Return 3 200
Land 5 000 5 000 Bad Debts 500
Trade Receivable 16 000 ? 61 000 Cash / Bank 1 400

Trade Payable 14 000 ? 44 500

Bal C/d 61 000
68 300 68 300
Cash 500 600
Bank 2 900 Debit 3 400 Credit Liability
Bank loan 1 200 1 900
g) Value of Transportation equipment as on last date
Transportation 8 000 ?
Equipment 7680 $_____________
Inventories 2 000 3 000
Adjustments: 1st Date Value 8000
Less: Depn @4 %* 8000 (320 )
1. Cash Sales $8 500. NBV on 28th Feb 2022 7680
2. Cash purchase $3 000 and credit purchases $38 000.
19 800
3. Depreciation on all non- current assets @4%. h) Capital as on 29th Feb 2021 $____________ and 28th Feb
4. Gross profit at 60% on cost/ Gross profit mark up 60% 28 080
2022 $_________
5. Discount allowed$2 200 and discount received $ 2 300. All Assets Less All Liabilities = Capital

6. Sales return $3 200 and purchase returns $4 000.

7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 3: Class Work: Required:
Balances as on 29th Feb 2021 28th Feb 2022
a. Trade payables on 28th February 2022: $________________
Petty cash 600 600
b. Cost of goods sold $______________
Land 5 000 5 000
c. Net sales for the year ending 28th February 2022 $_____________
Trade Receivable 16 000 ?
d. Credit sales for the year ending $_______________
Trade Payable 14 000 ?
e. Gross profit$______________
Cash 500 600
f. Trade receivable as on28th February 2022$_________________
Bank 2 900 Debit 3 400 Credit
g. Value of Transportation equipment as on last date $_____________
Bank loan 1 200 1 900
h. Capital as on 29th Feb 2021 $____________ and 28th Feb 2022 $_________
Transportation 8 000 ?
i. Net profit for the year ending $______________
Equipment
Inventories 2 000 3 000 Key: 44500, 36000, 57600, 52300, 21600, 61000, 7680, 19800, 28080,
20880/7560
Adjustments:
B. Cost of Goods Sold
1. Cash Sales $8 500.
2. Cash purchase $3 000 and credit purchases $38 000.
3. Depreciation on all non- current assets @4%.
4. Gross profit at 60% on cost/ Gross profit mark up 60%
5. Discount allowed$2 200 and discount received $ 2 300.
6. Sales return $3 200 and purchase returns $4 000.
7. Bad debts $500. Collection from customers by cheque $1
400, payment to suppliers in cash 1 200. Assume difference
of cash book cash and bank as drawings.
Question 4: Home Assignment
Balances as on 30th 30th September Required:
September 2027 2028
12 300
a. Trade payables as on 30 September 2027: S____________
Land 9 000 9 000
Real estate 4 000 4 500 b. Net sales for the year ending 30 September 2027 $
Investments
Trade ? 8 000
c. Gross profit $
Receivables d. Trade receivables as on 30 September 2027: $
Trade payables ? 7 500
Accrued 200 300
e. Capital as on 30 September 2027
expenses $__________________________and 30th September 2018
Accrued 250 350
incomes $______________________
Inventories 6 000 7 000 f. Net Profit $___________________________

[Key: $12 300, $111 500, $51 500, $57 600, $64 350, $21 050,
Other information:
1. Cash sales $24 000 and cash purchase $25 000. $51,7
2. Credit purchases $36 000 and credit sales $89 000. $1,700]
3. Discount allowed $500 and discount earned $800.
4. Return by customers $1 500.
5. Cheques received from customers $136 000 and cheques paid to supplier $40 000
6. Bad debts $600.
7. Other expenses paid in cash $700 and other incomes received in cash $1 200.
 Question 7: Class Work Customer Account
Mr. Rozario does not maintain any books of complete To find Credit
records. He gives the following transactions for the year Sales
ending 31 March 2027
Details 31st March 2026 31st March 2027
Stock 2 000 ?
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Prepaid Salary 200 150
Supplier Account
Outstanding 100 90
Wages
Bank 2 300 Cr 4 800 Dr To find Credit
Purchases
Other information:
1. Purchased goods in cash $400.
2. Sales of goods on cash $700.
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800.
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
7. Payment to Suppliers $3 800 collection from customers $9 900.
8. Any difference in Cash book can be treated as Drawings or Capital.
 Question 7: Class Work Customer Account
Mr. Rozario does not maintain any books of complete Bal b/d 1500 Sales Return 120
To find Credit
records. He gives the following transactions for the year Credit Sales 11 170 Bad Debts 40
Sales
ending 31 March 2027 ( Bal. fig ) Discount Allowed 10
Cash / Bank 9 900
Details 31st March 2026 31st March 2027
Balance c/d 2 600
Stock 2 000 ?
12 670 12 670
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Supplier Account
Prepaid Salary 200 150 Purchase Return 100 Bal b/d 1800
Outstanding 100 90 Discount earned 15 Credit Purchases 4215
Wages
Cash/Bank 3 800 ( Bal . Fig)
Bank 2 300 Cr 4 800 Dr To find Credit
Bal c/d 2100 Purchases
Other information: 6 015 6 015

1. Purchased goods in cash $400.

2. Sales of goods on cash $700.
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800.
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
7. Payment to Suppliers $3 800 collection from customers $9 900.
8. Any difference in Cash book can be treated as Drawings or Capital.
 Question 7: Class Work Bank Account
Mr. Rozario does not maintain any books of complete
records. He gives the following transactions for the year
ending 31 March 2027
Details 31st March 2026 31st March 2027
Stock 2 000 ?
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Prepaid Salary 200 150
Outstanding 100 90
Wages
Bank 2 300 Cr 4 800 Dr

Other information:
1. Purchased goods in cash $400.
2. Sales of goods on cash $700.
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800.
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
7. Payment to Suppliers $3 800 collection from customers $9 900.
8. Any difference in Cash book can be treated as Drawings or Capital.
 Question 7: Class Work Income Statement for the year ending
Mr. Rozario does not maintain any books of complete
records. He gives the following transactions for the year
ending 31 March 2027
Details 31st March 2026 31st March 2027
Stock 2 000 ?
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Prepaid Salary 200 150
Outstanding 100 90
Wages
Bank 2 300 Cr 4 800 Dr

Other information:
1. Purchased goods in cash $400.
2. Sales of goods on cash $700.
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800.
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
7. Payment to Suppliers $3 800 collection from customers $9 900.
8. Any difference in Cash book can be treated as Drawings or Capital.
 Question 7: Class Work Bank Account
Mr. Rozario does not maintain any books of complete
records. He gives the following transactions for the year
ending 31 March 2027
Details 31st March 2026 31st March 2027
Stock 2 000 ?
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Prepaid Salary 200 150
Outstanding 100 90
Wages
Bank 2 300 Cr 4 800 Dr

Other information:
1. Purchased goods in cash $400.
2. Sales of goods on cash $700. What could be the reason to prepare Bank Account ?
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800.
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
7. Payment to Suppliers $3 800 collection from customers $9 900.
8. Any difference in Cash book can be treated as Drawings or Capital.
Any difference in Cash book can be treated as Drawings or Capital
 Question 7: Class Work Income Statement for the year ending
Sales Cash Sales 700
Mr. Rozario does not maintain any books of complete
Credit Sales 11 170
records. He gives the following transactions for the year
11870
ending 31 March 2027
Less: Sales Return (120 ) 11 750
Details 31st March 2026 31st March 2027
Stock 2 000 ? Less Cost Of Sales
Machinery 6 000 5 800 Opening Sttock 2000
Furniture 4 000 3 900
Add Purchases ( 4215+400-100) 4515
Customers 1 500 2 600
Suppliers 1 800 2 100 6515
Prepaid Salary 200 150 Less : Closing Inventory
Outstanding 100 90
170 6345
Wages GROSS PROFIT
Bank 2 300 Cr 4 800 Dr (46% * 11750 ) 5405

Add: OTHER INCOME Discount earned 15

Other information: 5420
1. Purchased goods in cash $400. Less: Other Expenses
2. Sales of goods on cash $700. Discount Allowed 10
3. Goods are sold at 46 % profit margin. Bad Debts 40
4. Wages paid $1 700 and salaries paid $800.
Wages ( 1700 + 90 -100 ) 1690
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
Salaries ( 800 -150 + 200) 850
7. Payment to Suppliers $3 800 collection from customers $9 900. Depreciation on Machinery 200
8. Any difference in Cash book can be treated as Drawings or Capital. Depreciation on Furniture 100 (2890)
PROFIT FOR THE YEAR 2530
 Question 7: Class Work Balance Sheet
Mr. Rozario does not maintain any books of complete
records. He gives the following transactions for the year
ending 31 March 2027
Details 31st March 2026 31st March 2027
Stock 2 000 ?
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Prepaid Salary 200 150
Outstanding 100 90
Wages
Bank 2 300 Cr 4 800 Dr

Other information:
1. Purchased goods in cash $400.
2. Sales of goods on cash $700.
Total Assets
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800. Capital 17420 -2190 = 15230
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15. CURRENT LIABILITY
7. Payment to Suppliers $3 800 collection from customers $9 900. Outstanding expenses 90
Trade Payables 2100
8. Any difference in Cash book can be treated as Drawings or Capital.
Total Liabilities 17420
 Question 7: Class Work Balance Sheet
Mr. Rozario does not maintain any books of complete
records. He gives the following transactions for the year
ending 31 March 2027
Details 31st March 2026 31st March 2027
Stock 2 000 ?
Machinery 6 000 5 800
Furniture 4 000 3 900
Customers 1 500 2 600
Suppliers 1 800 2 100
Prepaid Salary 200 150
Outstanding 100 90
Wages
Bank 2 300 Cr 4 800 Dr

Other information:
1. Purchased goods in cash $400.
2. Sales of goods on cash $700.
3. Goods are sold at 46 % profit margin.
4. Wages paid $1 700 and salaries paid $800.
5. Return to suppliers $100 and returns by customers $120.
6. Bad debts $40. Discount allowed $10 and discount earned $15.
7. Payment to Suppliers $3 800 collection from customers $9 900.
8. Any difference in Cash book can be treated as Drawings or Capital.
Question 8: Class Work Customer Account
Following details are given by Ms. Insha (laptop Dealer) for the year To find Credit
ending 31 August 2027 Sales
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year
Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60%
Bad debts during the year amounted to $400 and Bad debts recovered
$60.
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60. Supplier Account
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
To find Credit
Payment of Carriage $200 (of which 60% treated as inwards and
Purchases
balance as outra
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $17 100, CL $4 590, Closing capital $12510.
Question 8: Class Work Customer Account
Following details are given by Ms. Insha (laptop Dealer) for the year To find Credit
ending 31 August 2027 Sales
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year
Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60%
Bad debts during the year amounted to $400 and Bad debts recovered
$60.
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60. Supplier Account
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
To find Credit
Payment of Carriage $200 (of which 60% treated as inwards and
Purchases
balance as outra
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $17 100, CL $4 590, Closing capital $12510.
Question 8: Class Work Bank Account
Following details are given by Ms. Insha (laptop Dealer) for the year
ending 31 August 2027
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year
Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60%
Bad debts during the year amounted to $400 and Bad debts recovered
$60.
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60. Income Statement for the year ending
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
Payment of Carriage $200 (of which 60% treated as inwards and
balance as outra
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $17 100, CL $4 590, Closing capital $12510.
Question 8: Class Work Bank Account
Following details are given by Ms. Insha (laptop Dealer) for the year
ending 31 August 2027
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year
Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60%
Bad debts during the year amounted to $400 and Bad debts recovered
$60.
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60.
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
Payment of Carriage $200 (of which 60% treated as inwards and
balance as outra
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $17 100, CL $4 590, Closing capital $12510.
Question 8: Class Work Income Statement for the year ending
Following details are given by Ms. Insha (laptop Dealer) for the year
ending 31 August 2027
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year
Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60%
Bad debts during the year amounted to $400 and Bad debts recovered
$60.
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60.
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
Payment of Carriage $200 (of which 60% treated as inwards and
balance as outra
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $7 100, CL $4 590, Closing capital $12510.
Question 8: Class Work Income Statement for the year ending
Following details are given by Ms. Insha (laptop Dealer) for the year
ending 31 August 2027
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year
Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60%
Bad debts during the year amounted to $400 and Bad debts recovered
$60.
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60.
7380
60% *12300
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
Payment of Carriage $200 (of which 60% treated as inwards and
balance as outra 7740
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $17 100, CL $4 590, Closing capital $12510.
Question 8: Class Work Balance Sheet as onn
CURRENT ASSETS
Following details are given by Ms. Insha (laptop Dealer) for the year
Closing Inventory
ending 31 August 2027
Trade Receivables ( 5000 -100) 4 900
She started her business on 1 September 2026 with $ 7 000.
1. Transactions during the year Prepaid Salary (600/15 * 3) 120 7 240

Purchase of Laptop on cash $1 400 and sold laptop for cash $5 300.
Gross profit margin 60% CURRENT LIABILITIES
Bad debts during the year amounted to $400 and Bad debts recovered
Trade Payables 4 450
$60.
Outstanding Expenses 140 4590
Goods lost by fire $30,
Goods returned to suppliers $70 and returned by customers $60.
Payment of Salary $600 [ paid for 3 months extra]
Payment of Wages $700 [unpaid for two months]
Payment of Carriage $200 (of which 60% treated as inwards and Capital 7000
balance as outra Add: Profit 5510 12510
Payment to suppliers $1 200 and collection from customers $1 600.
2. Balance as on 31st August 2027:
Customers $ 5 000 and Suppliers $4 450. Reserve for doubtful debts 2%.

Key: Credit sales $7 060, Credit purchase $5 720, Balance $9 860,

Closing stock $2 220, Gross profit $7 380, Net sales $12 300, Net
purchase $7 140, Other expenses $1 930, Net profit for the year $5 510,
CA $7 100, CL $4 590, Closing capital $12510.
 Details $ Details $
1] Ms. Smith started business with Furniture $1 500, Stock
$500 and Bank $6 000 as on September 1, 2027.
2] Transaction during the year:
● Purchases are made on cash and credit. Sales on cash
and credit $60 000.
● Cash purchase amounted to $6 500. Credit sales
amounted $ 45 000.
● Gross profit ratio 40%.
● Discount allowed $500 and discount earned $700.
● Reserve for bad debts as on 31 August 2018 4%.
● Life of furniture is 5 years. Residual value of furniture
estimated $ 200. Total Sales = 60 000
● Wages $100 p.m. Debit transfer of $1 050 towards Credit Sales 45 000
wages. Cash Sales 15 000
● Salaries $75 p.m. Debit transfer of $ 950. Collection from Customers 32000 ( Bal . Fig )
● Credit transfer of $100 towards interest. of Trade Receivable Account
● Carriage outward bill of $200 due.
3] Balance as on 31 August 2028.
● Trade payables $ 13 000,
● Trade Receivable $ 12 500,
Bank debit balance 24 600
Question 9 Details $ Details $
Ms. Smith started business with Furniture $1 500, Stock
$500 and Bank $6 000 as on September 1, 2027.
2] Transaction during the year:
● Purchases are made on cash and credit. Sales on cash
and credit $60 000.
● Cash purchase amounted to $6 500. Credit sales
amounted $ 45 000.
● Gross profit ratio 40%.
● Discount allowed $500 and discount earned $700.
● Reserve for bad debts as on 31 August 2018 4%.
● Life of furniture is 5 years. Residual value of furniture
estimated $ 200.
● Wages $100 p.m. Debit transfer of $1 050 towards
wages.
● Salaries $75 p.m. Debit transfer of $ 950.
● Credit transfer of $100 towards interest.
● Carriage outward bill of $200 due.
3] Balance as on 31 August 2028.
● Trade payables $ 13 000,
● Trade Receivable $ 12 500,
Bank debit balance 24 600
 Trade Payables Account
Cash Account Details $ Details $
Details $ Details $
Bal b/d 6 000Purchases 6 500 Cash Credit
20 000
Sales 15000
Suppliers ( Bal Account Purchases 33 700
20 000
.fig) Discount 700
Customer 32 000 Wages 1 050 earned Bal fig
Interest ( PLCA) 100 Salaries 950

Balance c/d 13000

Bal c/d 24 600 33 700 33 700
53 100 53 100

Cash book : Debit MONEY COMING IN

33 700 + 6 500 = 40 200 Credit Money going out
Total Sales = 60 000 Total Purchases =
Credit Sales 45 000 Credit Purchases = 33 700
Cash Sales = 15 000 ( 60 000 -15000) Cash Purchases = 6500
Collection from Customers 32000 ( Bal . Fig )
of Trade Receivable Account Payment to Suppliers =
1] Ms. Smith started business with Furniture $1 500, Stock
$500 and Bank $6 000 as on September 1, 2027.
Furniture = 1500
2] Transaction during the year:
Life of Furniture = 5 years
● Purchases are made on cash and credit. Sales on cash Residual Value = 200
and credit $60 000. Depreciation of Furniture = Cost - Estimated Scrap ( RV)
● Cash purchase amounted to $6 500. Credit sales Life
amounted $ 45 000.
● Gross profit ratio 40%. = 1500 – 200 / 5
● Discount allowed $500 and discount earned $700. = 260
● Reserve for bad debts as on 31 August 2018 4%. Expense
● Life of furniture is 5 years. Residual value of furniture
estimated $ 200.
● Wages $100 p.m. Debit transfer of $1 050 towards
wages.
● Salaries $75 p.m. Debit transfer of $ 950.
● Credit transfer of $100 towards interest.
● Carriage outward bill of $200 due.
3] Balance as on 31 August 2028.
● Trade payables $ 13 000,
● Trade Receivable $ 12 500,
Bank debit balance 24 600
 Sales 60 000
1] Ms. Smith started business with Furniture $1 500, Stock Less Cost Of Sales
$500 and Bank $6 000 as on September 1, 2027. Opening Inventory
2] Transaction during the year:
● Purchases are made on cash and credit. Sales on cash
and credit $60 000.
● Cash purchase amounted to $6 500. Credit sales
amounted $ 45 000.
● Gross profit ratio 40%.
● Discount allowed $500 and discount earned $700.
● Reserve for bad debts as on 31 August 2018 4%.
● Life of furniture is 5 years. Residual value of furniture
estimated $ 200.
● Wages $100 p.m. Debit transfer of $1 050 towards
wages.
● Salaries $75 p.m. Debit transfer of $ 950.
● Credit transfer of $100 towards interest.
● Carriage outward bill of $200 due.
3] Balance as on 31 August 2028.
● Trade payables $ 13 000,
● Trade Receivable $ 12 500,
Bank debit balance 24 600
0452/21/O/N/21
0452/21/O/N/21
0452/22/F/M/21
0452/22/F/M/21
a)Mark up is given :
To calculate purchases
1.Convert mark up to margin
2.GP= Revenue *margin %
3.Calculate the COS.
4.Purchases=COS+ cl.stock – op.stock.

b)Mark up is given:
To calculate revenue
1.Calculate COS
2.GP=COS*mark up %
3.COS+ GP=Revenue