Answered: 1.Describe three (3) techniques of…

Name: 1.Describe three (3) techniques of constructing accounts from incomple
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Description: 1.Describe three (3) techniques of constructing accounts from incomplete records2 The following figures are for the year 2020:Inventory 1.1.2020 $4000Inventory 31.12.2020 6000Purchases 52,000A uniform rate of markup of 20% is a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1.Describe three (3) techniques of constructing accounts from incomplete records

2 The following figures are for the year 2020:

Inventory 1.1.2020 $4000

Inventory 31.12.2020 6000

Purchases 52,000

A uniform rate of markup of 20% is applied.

Required: Calculate the gross profit and the sales figures using the income statement approach.

Karie Auto Supplies is a soletrader enterprise which did not maintain full double entry records. The owner asked you an accounts clerk to find some missing figures for him. He provides the following balances:

Jan 1, 2020Dec 31, 2020

Building 1,000,000 1,0000,00

Fixtures and fittings 250,000 250,000

Loan 800,000 800,000

Stock 120,000 155,000

Bank 200,000 535,000

Receivables 85,000 100,000

Payables 56,000 75,000

Goods taken for personal use amounted to $5,0000.

Required :

a. Calculate the capital as at January 1, 2020 and December 31, 2020.

b. Ascertain the amount for net profit for the year via the balance sheet.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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