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JAMB Principles of Accounts 1995 Question 23

Question 23

Incomplete Records

The starting point for the production of accounts from incomplete records is to

  1. A.ascertain the total sales
  2. B.compute the opening stock of goods sold
  3. C.verify the total purchases
  4. D.prepare an opening statement of affairs.
Show the answer and explanation

Answer: D (prepare an opening statement of affairs.)

Explanation

First find the opening capital by listing assets and liabilities at the start in a statement of affairs.