I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

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   Credit sales and trade receivables 

The approach to incomplete records questions is to build up the information given so as to complete the 

necessary double entry. This may involve reconstructing control accounts for: 

 

Cash and bank 

 

Trade receivables and payables 

If a business does not keep a record of its sales on credit, the value of these sales can be derived from 

the opening balance of trade receivables, the closing balance of trade receivables, and the payments 

received from customers during the period. 

 

 

 

 EXAM FOCUS POINT 

Beware of the wording in an exam question.  

You should note that: 

(a) 

If a question states that a proprietor's drawings during a given year are 'approximately $40 per 

week' then you should assume that drawings for the year are $40 × 52 weeks = $2,080. 

(b) 

However, if a question states that drawings in the year are 'between $35 and $45 per week', do 

not assume that the drawings average $40 per week and so amount to $2,080 for the year. 

You could not be certain that the actual withdrawals did average $40, and so you should treat 

the withdrawals figure as a missing item that needs to be calculated. 

BPP Tutor Toolkit Copy

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CHAPTER 17  

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  INCOMPLETE RECORDS