Incomplete Records Slides
Incomplete Records Slides
The first step is to set out the main headings which are used in a
Balance Sheet. We can then use the available information to obtain the
relevant values. The main headings which are needed are:
• Fixed Assets
• Current Assets
• Stock
• Debtors
• Cash and Bank
• Current Iiabilities
• Creditors
• Bank overdraft
• Loans
• Capital
Make sure you have learnt these headings before your exam.
Opening Statement of Affairs
• Your first task is to set out these headings and then review the
question for the relevant information so that you can insert
the values for as many figures as possible.
• Usually there will be two values missing:
• Fixed assets and capital
• As capital is the balancing figure, it is usually necessary to
work out the value for fixed assets.
Complete Record Method
_____
xxxxx xxxxx
_____ _____
When constructing the Profit and Loss Account, there are two
main points to remember. The first is that expenses must include
both cash expenses and expenses paid by cheque. The second is
that depreciation must be included — but remember to include
any assets acquired during the year!
Balance Sheet
• Preparing the Balance Sheet should be relatively
straightforward.
• Fixed assets
• = value from the statement of affairs
• + new assets
• – depreciation for period
• Current assets
• Stock = Closing stock as calculated in cost of sales
• Debtors = Closing balance on the Debtors Control Account
• Cash = Closing balance on the Cash Account
• Bank = Closing balance on the Bank Account (if cash on hand)
Balance Sheet
• Current Liabilities
• Creditors = Closing balance on the Creditors Control Account
• Bank = Closing balance on the Bank Account (if overdrawn)
• Capital = Balancing figure which can be confirmed as:
• opening balance from the Statement of Affairs
• + profit from the Profit and Loss Account
• – drawings
• + capital introduced
Summary