CAF-1 · Chapter 12 · Question 6 of 15
To calculate the missing figure for 'Credit Sales' during the year, an accountant reconstructing incomplete records would most likely prepare a T-account for:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Trade Receivables (Debtors).
Explanation
The Trade Receivables (Debtors) account is reconstructed by entering opening/closing balances and cash received from customers, allowing the missing 'Credit Sales' figure to be derived as the balancing amount.
More Incomplete Records MCQs
- Q8An entity has opening trade payables of Rs. 500,000 and closing trade payables of Rs. 800,000. It paid Rs. 4,000,000 to suppliers during…
- Q9How is the net profit or loss calculated using the net assets (capital) approach when full income and expense records are missing?
- Q10At the start of the year, a business had net assets of Rs. 600,000, and at year-end, net assets were Rs. 900,000. During the year, the…
- Q11A warehouse fire destroyed a portion of inventory. Opening inventory was Rs. 200,000 and purchases were Rs. 800,000. Based on the sales…
- Q12If a business owner suspects that an employee has been stealing cash from the till, which account should the accountant reconstruct to…