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WAEC Financial Accounting 1997 Question 40

Question 40

Incomplete Records

Where there are no proper books of account, the capital at the commencement of a period is ascertained by preparing

  1. A.Total Debtors and Creditors Accounts
  2. B.Bank Reconciliation Statement
  3. C.Statement of Affairs
  4. D.Trading, Profit and Loss Accounts
  5. E.Balance Sheet.
Show the answer and explanation

Answer: C (Statement of Affairs)

Explanation

A statement of affairs lists assets and liabilities to find capital when records are incomplete.