CERTIFICATE LEVEL

Subject Fundamentals of Financial Accounting (BA3)

Mallik De Silva
Lecturer FCMA, MSc, ACA, LTCL, Dip. IFRS (ACCA)

Module BA3 M Kit Chapter 20

Code BA3/MS/41
Chapter 20

Incomplete Records
Question 248

A theft happened at NL stores of which the following details are available.

1. Opening Cash balance $10,000.

2. Opening Receivables balance $5,000
3. Closing Receivables balance $3,000
4. Total Sales $50,000
5. Cheques from customers $7,000
6. Cash collections banked $20,000
7. Expenses paid $3,000
8. Closing cash balance $1,000

How much of cash did the petty cashier steal?

Question 249
May 2001 Q: 1.11

There is £100 in the cash till at the year end at F Ltd, but the accountant has
discovered that some cash has been stolen. At the beginning of the year there was
£50 in the cash till and debtors were £2,000. Total sales in the year were £230,000.
Debtors at the end of the year were £3,000. Cheques banked from credit sales were
£160,000 and cash sales of £50,000 have been banked.

How much cash was stolen during the year?

A £18,950. B £19,000. C £19,050. D £20,950.

Question 250
May 2002 Q: 1.23

P is a sole proprietor whose accounting records are incomplete. All the sales are
cash sales and during the year $50,000 was banked, including $5,000 from the sale
of a business car. He paid $12,000 wages in cash from the till and withdrew $2,000
per month as drawings. The cash in the till at the beginning and end of the year was
$300 and $400 respectively.

What were the sales for the year?

A $80,900 B $81,000 C $81,100 D $86,100

BA3 Nov. 2020 – M KIT – Mallik De Silva 1

Question 251

Tony’s business had net assets of $50,000 as at 1st January 2012. During the year he
introduced new capital of $30,000 and made a profit of $20,000. He did not have any
cash drawings but goods drawn amounted to $5,000

You are required to calculate his closing net assets?

Question 252

Toby commenced business on 1st January 2013 with a capital of $20,000. As at 31st
December 2013 the business had the following assets and liabilities.
$
Property Plant & Equipment 40,000
Furniture 20,000
Inventory 10,000
Receivables 15,000
Bank over draft 5,000
Trade Payables 3,000
Bank Loan 6,000

What is the profit for 2013?

Question 253

Ruvi owns a shop and provided you with the following information relating to the year
ended 31 December 2016:

Inventory valuation at 1 January 2016 was $5,000 and $8,000 at 31 December. Ruvi made
purchases during the year at a cost of $20,000. Ruvi estimated that she made a gross profit
margin on sales of 40%.

Required:

a) What was the value of sales for the year ended 31 December 2016?

$.............. ……………………………………..

b) How would your answers change of products were priced at a markup of 40%

BA3 Nov. 2020 – M KIT – Mallik De Silva 2