passwella.
Menu

JAMB Principles of Accounts 2002 Question 39

Question 39

Incomplete Records

In an incomplete record system, a trading account cannot be prepared until the

  1. A.day book has been balanced
  2. B.amount of personal drawings has been established
  3. C.cash book has been balanced
  4. D.amount of sales and purchases has been established.
Show the answer and explanation

Answer: D (amount of sales and purchases has been established.)

Explanation

A trading account needs sales and purchases figures, which must first be worked out from the incomplete records.