ACC 102 CA 7 INCOMPLETE RECORDS Assignment 1. Suppose that opening receivables for Bubble's business is N300,000. There have been total receipts from customers of N550,000 of which N150,000 relates to cash sales and N400,000 relates to receipts from receivables. Discounts allowed in the year totaled N30,000 and closing balance of receivables was N370,000. What are total sales for the year? 2. The opening payables of Deck's business are N150,000. Total payments made to suppliers during the year were N140,000. Discounts received were N5,000 and closing payables were N130,000. What are total purchases for the year? 3. On 1 January Emma's bank account is overdrawn by N13,670. Payments in the year totaled N85,360 and on 31st December the closing balance is N22,270 (positive). What are total receipts for the year? 4. The following information relates to Ivory's business: On 1 January Electricity accrued Rent prepaid Cash paid in the year Electricity Rent On 31. December Electricity accrued Rent Prepaid N2,500 N3.000 N10,000 N20,000 N3,000 N4.000 What are the income statement charges for electricity and rent for the year? 3. ABC and Co has provided the following information for his financial activities for 2019. You are required to prepare his income statement. Balance as at Motor Vehicle Fixtures Inventory Accounts Receivables Accounts Payables Cash at Hand Loan 31/12/18 100,000 70,000 34,000 36.700 45.800 23,550 100.000 31/12/19 95.000 63.000 42,000 43.900 34,400 34,570 90.000 Other information provided: i. His gross profit margin is 25% ii. Expenses paid during the year included: Rent N2,170, Salaries and Wages N4,800 and fueling N1,900 iii. His drawings for the year was N5,200 iv. A motor vehicle of N8,000 was bought during the year 6. i. Differentiate between single entry and incomplete record ii. Explain two (2) reasons for incompleteness of accounting records iii. Discuss three (3) limitations of incomplete entry iv. Why would it be necessary to convert mark-up to margin or from margin to mark-up (illustrate with worked examples)