Introduction
In incomplete records questions, some accounting figures are missing. Students must calculate the missing information using available data.
The most common method used is preparing control accounts.
Common Missing Figures
- Credit Sales
- Credit Purchases
- Cash received from customers
- Cash paid to suppliers
- Closing receivables
- Closing payables
Receivables Control Account
Opening Receivables
5,000
Credit Sales
?
Less: Cash Received
12,000
Less: Discount Allowed
500
Closing Receivables
3,500
Credit Sales (Missing Figure)
11,000
Why Control Accounts Are Useful
- Help calculate missing figures
- Summarise receivables and payables
- Verify accuracy of accounting records
Practice Question
The following information relates to receivables:
- Opening receivables = 4,000
- Cash received from customers = 15,000
- Discount allowed = 500
- Closing receivables = 3,500
Calculate the credit sales for the year.
Quick Check
Which account is used to calculate credit sales?
- Purchases Account
- Receivables Control Account
- Cash Account
Show Answer
Correct Answer: Receivables Control Account