Accounting 0452 · IGCSE · Incomplete records

Incomplete records — practice question

Ben runs a small business, but he does not keep a complete set of accounting records. He has supplied the details below: 31 March 2024 / 1 April 2023 Premises at cost $140000 / $140000 Machinery at cost $106000 / $92000 Accumulated depreciation on machinery $36000 / $10000 Inventory $42000 / $24600 Trade receivables $43400 / $39600 Trade payables $19700 / $24750 Bank $13000 debit / $3200 credit Other receivables $1200 / $1650
(a)[2]

Calculate Ben’s opening capital and his closing capital.

(b)[4]

Calculate the profit for the year using the table below. Use your opening and closing capitals from 2(a), and show whether each of Ben’s transactions should be added to or deducted from opening capital.

(c(i))[3]

Calculate the credit purchases for Ben for the year ended 31 March 2024.

(c(ii))[3]

Calculate Ben’s total sales for the year ended 31 March 2024 from the information provided.

(d)[5]

Advise Ben on whether he ought to employ a book-keeper. Support your answer with two advantages and two disadvantages of employing a book-keeper.

(e(i))[1]

Which accounting principle is he using when he creates a provision for doubtful debts?

(e(ii))[2]

Complete the table by putting a tick (✓) to show the effect that creating a provision for doubtful debts would have on Ben’s profit for the year, trade receivables and cash at bank.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI