Skip to content

CA Foundation · Accounting · Accounts from Incomplete Records

In a cash and bank summary prepared from incomplete records, if total receipts including the opening balance exceed the total known payments and the closing balance is known, the difference between the two sides is treated as:

The difference is treated as a balancing figure representing the missing receipt or payment, such as drawings or an unrecorded deposit. It is not profit or capital, because the summary only reconciles cash movements and does not measure performance.

  1. ABalancing figure, being the missing payment or receiptCorrect
  2. BNet profit for the year
  3. CClosing capital of the proprietor
  4. DProvision for doubtful debts

Explanation

The summary is balanced by inserting the missing item, such as drawings or cash deposited, as a balancing figure once the closing balance is known. It is not profit or capital, which come from other statements.

Did you get it right without looking?

One question tells you little. A timed set on Accounts from Incomplete Records shows your real accuracy, how long you take and where you lose marks.

Practise Accounts from Incomplete RecordsFree diagnostic mock

More Accounts from Incomplete Records questions