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

gross profit percentages to construct a working for gross profit in which the unknown figure can be 

inserted as a balance. 

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The construction of a cash book, largely from bank statements showing receipts and payments of a 

business during a given period, is often an important feature of incomplete records problems. 

 

CHAPTER ROUNDUP 

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CHAPTER 17  

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  INCOMPLETE RECORDS 

 

313 

 

1 

In the absence of a sales account or sales day book, how can a figure of sales for the year be computed?  

2 

A business has opening payables of $75,000 and closing payables of $65,000. Cash paid to suppliers 

was $65,000 and discounts received were $3,000. What is the figure for purchases? 

 A 

$58,000 

 B 

$78,000 

 C 

$52,000 

 D 

$55,000 

3 

What is the difference between 'mark-up' and 'gross profit percentage'?  

4 

What is the accounting double entry to record the loss of inventory by fire or burglary?  

 

A 

DEBIT P/L a/c  

 

CREDIT cost of sales 

 

B 

DEBIT cost of sales   

CREDIT P/L a/c 

5 

In what circumstances is a two column cash book useful?  

6 

If a business proprietor pays their personal income into the business bank account, what is the 

accounting double entry to record the transaction?  

 A 

DEBIT 

drawings 

 CREDIT 

cash 

 B 

DEBIT 

cash 

  CREDIT 

drawings 

7 

A business has net assets of $70,000 at the beginning of the year and $80,000 at the end of the year. 

Drawings were $25,000 and a lottery win of $5,000 was paid into the business during the year. What 

was the profit for the year? 

 A 

$10,000 

loss 

 B 

$30,000 

profit 

 C 

$10,000 

profit 

 D 

$30,000 

loss 

8 

A business usually has a mark-up of 20% on cost of sales. During a year, its sales were $90,000. What 

was cost of sales? 

 A 

$15,000 

 B 

$72,000 

 C 

$18,000 

 D 

$75,000 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUICK QUIZ 

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