Level: Easy
Easy Worked Examples: Incomplete Records
Six graded examples for Form 5 Chapter 2 with small round figures: opening and closing capital, the Comparison Method and the Analysis Method for finding credit sales and purchases.
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Example 1: Calculating Opening Capital
Question
Solution plan
Opening Capital = Total Assets − Total Liabilities. List all assets and add them (8,000 + 5,000 + 2,000 + 1,000 = 16,000). Creditors are a liability, so subtract them (16,000 − 3,000).
| Details | RM | RM |
|---|---|---|
| Assets | ||
| Shop fittings | 8,000 | |
| Inventory | 5,000 | |
| Debtors | 2,000 | |
| Cash | 1,000 | |
| Total Assets | 16,000 | |
| Less: Liabilities | ||
| Creditors | 3,000 | |
| Total Liabilities | 3,000 | |
| Opening Capital | 13,000 |
Formula: Opening Capital = Assets − Liabilities.
Answer
Total assets are RM16,000 and total liabilities RM3,000. Puan Aminah's Opening Capital as at 1 January 2024 is RM13,000.
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Example 2: Calculating Closing Capital
Question
Solution plan
Closing Capital = Total Assets − Total Liabilities. Add the assets (20,000 + 6,000 + 4,000 + 5,000 = 35,000). Creditors and the loan are both liabilities (7,000 + 8,000 = 15,000), so subtract them (35,000 − 15,000).
| Details | RM | RM |
|---|---|---|
| Assets | ||
| Workshop tools | 20,000 | |
| Spare-parts inventory | 6,000 | |
| Debtors | 4,000 | |
| Bank balance | 5,000 | |
| Total Assets | 35,000 | |
| Less: Liabilities | ||
| Creditors | 7,000 | |
| Loan | 8,000 | |
| Total Liabilities | 15,000 | |
| Closing Capital | 20,000 |
A loan is a liability, not an asset.
Answer
Total assets are RM35,000 and total liabilities RM15,000. Encik Halim's Closing Capital as at 31 December 2024 is RM20,000.
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Example 3: Comparison Method: Net Profit
Question
Solution plan
When there are no drawings and no additional capital: Net Profit/Loss = Closing Capital − Opening Capital. So 32,000 − 25,000. A positive result is a profit; a negative one is a loss.
| Details | RM | RM |
|---|---|---|
| Closing Capital | 32,000 | |
| Less: Opening Capital | 25,000 | |
| Net Profit | 7,000 |
Simple formula (no drawings/additional capital): Profit = Closing Capital − Opening Capital.
Answer
Capital rose from RM25,000 to RM32,000. Kedai Bunga Melati's Net Profit for the year ended 31 December 2024 is RM7,000.
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Example 4: Comparison Method: With Drawings and Additional Capital
Question
Solution plan
Drawings reduce capital, so add them back to Closing Capital. Additional capital raises capital but is not profit, so deduct it together with Opening Capital. Net Profit = (Closing Capital + Drawings) − (Opening Capital + Additional Capital) = (24,000 + 6,000) − (18,000 + 3,000).
| Details | RM | RM |
|---|---|---|
| Closing Capital | 24,000 | |
| Add: Drawings | 6,000 | |
| 30,000 | ||
| Less: Opening Capital | 18,000 | |
| Less: Additional Capital | 3,000 | |
| Total Deducted | 21,000 | |
| Net Profit | 9,000 |
Profit = (Closing Capital + Drawings) − (Opening Capital + Additional Capital).
Answer
After adjusting for RM6,000 drawings and RM3,000 additional capital, Gerai Nasi Lemak Pak Din's Net Profit for the year ended 31 December 2024 is RM9,000.
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Example 5: Analysis Method: Finding Credit Sales
Question
Solution plan
In the Debtors Control Account, the opening balance and credit sales sit on the debit side; bank receipts and the closing balance on the credit side. Credit sales is the balancing figure: Credit Sales = Closing Balance + Receipts − Opening Balance = 5,000 + 20,000 − 3,000.
| Particulars | RM | Particulars | RM |
|---|---|---|---|
| Balance b/d | 3,000 | Bank | 20,000 |
| Sales (credit) | 22,000 | Balance c/d | 5,000 |
| 25,000 | 25,000 |
Credit sales is the balancing figure on the debit side.
Answer
Kedai Perabot Indah's credit sales for 2024 are RM22,000 (5,000 + 20,000 − 3,000), and both sides of the account total RM25,000.
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Example 6: Analysis Method: Finding Credit Purchases
Question
Solution plan
In the Creditors Control Account, the opening balance and credit purchases sit on the credit side; bank payments and the closing balance on the debit side. Credit purchases is the balancing figure: Credit Purchases = Closing Balance + Payments − Opening Balance = 6,000 + 15,000 − 4,000.
| Particulars | RM | Particulars | RM |
|---|---|---|---|
| Bank | 15,000 | Balance b/d | 4,000 |
| Balance c/d | 6,000 | Purchases (credit) | 17,000 |
| 21,000 | 21,000 |
Credit purchases is the balancing figure on the credit side.
Answer
Kedai Basikal Laju's credit purchases for 2024 are RM17,000 (6,000 + 15,000 − 4,000), and both sides of the account total RM21,000.
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