FAC1502 Incomplete Records Notes

8/16/2019 FAC1502 Incomplete Records Notes

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GROUP 3E

FAC 1502 SEMESTER 1- 2016

UNISA

INCOMPLETE RECORDS

[STUDY UNIT 17]Prepared by RAMASHAU ALUWANI

2016-04-27 UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E 1


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LINE-UP

• INTRODUCTION

• BACKGROUND

•

MUST DO EXERCISES• GROUP WEEKLY ACTIVITY

• TICK-BOX

• INSPIRATIONAL POEM



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INTRODUCTIONDear Honourable Members

We are almost there to complete our study units. The

question is how far are you?

NB. Previous question papers are available under main site FAC1502-16-S1.

I would like to find out from you which topic you need further clarity.

Kind regards

Mr. Ramashau AluwaniUNISA E-Tutor: FAC 1502 (Group 3E)

Many of life’s failures are people who did not realize how close they were to

success when they gave up. Thomas A. Edison



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BACKGROUND• When accounting transactions have not been recorded according to the

double-entry system, the records are incomplete.

• Sometimes, the owners or management of small businesses, non-profit

organisations and occasionally even larger firms know very little about

basic accounting and either keep no records at all or keep some records on

a single-entry basis.

• Incomplete records also occur when financial data has been lost, stolen ordestroyed by fire.

Calculation of estimated profit or loss from incomplete records

Equity = Assets – Liabilities

• The profit or loss for the period can be calculated by subtracting the

equity at the beginning of the period from the equity at the end of the

period. Adjustments must then be made for any income or expenditure

not yet accounted for and for drawings or additional capital contributions

made by the owners.



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CALCULATION OF ESTIMATED PROFIT /LOSS FROM

INCOMPLETE RECORDS

Equity at the end of the period (before adjustments)minus

Equity at the beginning of the period

plus

Income not yet accounted for

minus

Expenses not yet accounted for

plus

Drawings

MinusAdditional capital contributions

equals

Estimated net profit or loss for period



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PREPARATION OF ACCOUNTS FROM

INCOMPLETE RECORDS• STEPS 1

• Prepare a statement of assets and liabilities as at the beginning of the period todetermine the equity as at the beginning of the period.

• STEP 2

• The first account to be reconstructed should be the bank account. Make asummary of the bank account for the financial period. The counterfoils of

cheques, deposit slips and the bank statements can be used as reference.• STEP 3

• Establish whether a float or petty cash is in use. If one is, summarize all receiptsand payments in the float or petty cash account and determine any cash on hand

• STEP 4

• Once satisfied that all the journals have been completed and that all postings

have been made to the ledger accounts, the accounts must be balanced, and atrial balanced prepared account.

• STEP 5

• Compile the financial statements



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WHERE MINIMAL RECORDS ARE KEPT• STEP 1

• Make a list of all assets and liabilities as at the beginning of the financialperiod

• STEP 2

• Calculate the capital as at the beginning of the period

• STEP 3

• Prepare a summary of the bank account for the year by using cheque

counterfoils, deposit slips and bank statements as reference• STEP 4

• Ascertain the balances of the assets and liabilities at the end of the period

• STEP 5

• The next step is to calculate the figures fro purchases and sales

• STEP 6

• Where accruals and prepayments exist for income and expenditure items,the amounts which must be disclosed in the statement of comprehensiveincome need to be calculated.

• STEP 7

• All the required information is now available and the financial statements

can be prepared2016-04-27 UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E 7


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MUST DO EXERCISES

PREVIOUS QUESTION PAPERS

• QUESTION 5 (MAY-JUNE 2014)

• QUESTION 3 (MAY-JUNE 2013)

TUTORIAL LETTER• TUTORIAL LETTER 102-QUESTION 6

STUDY GUIDE

•EXERCISE 17.1 (PAGE 343)

• EXERCISE 17.2 (PAGE 347)

• REVISION EXERCISE 1 (PAGE 350-351)

• REVISION EXERCISE 2 (PAGE 353)



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GROUP 3 ACTIVITY

• THIS WEEK YOU ARE REQUIRED TO ATTEMPT

QUESTION 5 OF JUNE 2014 EXAM PAPER

• MAKE SURE YOU PARTICIPATE ON THE

DISCUSSION FORUM

• THIS IS GOOD QUESTION TO ASSESS

YOURSELF IF YOU HAVE UNDERSTOOD THE

PRINCIPLES.

• ALL THE BEST

2016-04-27 9UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E


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TICKBOX

ALMOST THERE TO THE FINISHING LINE…! NO. TOPIC STATUS TICK

1 STUDY UNIT 1-5 DONE

2 STUDY UNIT 6 DONE

3 STUDY UNIT 7 DONE

4 STUDY UNIT 8 DONE

5 STUDY UNIT 9 DONE

6 STUDY UNIT 11 DONE

7 STUDY UNIT 13 DONE

8 STUDY UNIT 15 NOT DONE

9 STUDY UNIT 16-NON-PROFIT ENTITIES DONE

10 STUDY UNIT 17-INCOMPLETE RECORDS DONE

11 ASSIGNMENT NO. 1 DONE

12 ASSIGNMENT NO. 2 DONE



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INSPIRATION POEM Don't Quit

When things go wrong as they sometimes will,When the road you're trudging seems all uphill,

When funds are low and the debts are high,And you want to smile, but you have to sigh.

When care is pressing you down a bit.Rest, if you must, but don't you quit.

Life is queer with its twists and turnsAs every one of us sometimes learns.And many a failure turns about

When he might have won had he stuck it out:Don't give up though the pace seems slow -

You may succeed with another blow.

Success is failure turned inside out -The silver tint of the clouds of doubt.

And you never can tell how close you are.It may be near when it seems so far:

So stick to the fight when you're hardest hit

It's when things seem worst that you must not quit.by: Unknown Author



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COUNTDOWN TO EXAM!

GO FOR GOLD!

THANK YOU


Documents

FAC1502 Incomplete Records Notes