Incomplete records
Incomplete-records accounting reconstructs missing figures from available evidence, such as cash records, opening and closing balances, control accounts and known margins. Common techniques use the accounting equation, receivables and payables movements, and trading relationships. The method must distinguish business transactions from capital introduced, drawings and loans and must account for missing or destroyed inventory where relevant.
Worked example
Ignoring other adjustments, credit sales = customer receipts + closing receivables − opening receivables. Receipts of $40,000, closing $8,000 and opening $6,000 imply sales of $42,000.
Common mistake
Do not apply a gross margin as though it were a mark-up, or assume every unexplained cash receipt is sales.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |