Forums › ACCA Forums › ACCA FA Financial Accounting Forums › F3 revision kit chapter 20: incomplete records
- This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
- October 15, 2020 at 9:48 am #588955jihanaliMember
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Hello sir, kindly i need assistance in the following question
20.9 A sole trader’s business made a profit of $32,500 during the year ended 31 March 20X8. This figure was
after deducting $100 per week wages for himself. In addition, he put his home telephone bill through the
business books, amounting to $400 plus sales tax at 17.5%. He is registered for sales tax and therefore has
charged only the net amount to his statement of comprehensive income.
His capital at 1 April 20X7 was $6,500. What was his capital at 31 March 20X8?
how are we going to deal with the drawings of ( 100*52) and the net amount plus sales tax of $470 and his home telephone expenses charged and recorded as a business expensesOctober 15, 2020 at 2:56 pm #589007John MoffatKeymaster
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In future please ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other 🙂
This is testing your knowledge of the accounting equation.
His drawings were (52 x 100) + 470 = $5,670.
The profit is 32,500 + (52 x 100) + 400 = $38,100
We know the opening capital from the question, and so we can calculate the closing capital using the accounting equation.
This is all explained in my free lectures. The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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