Page 13 - Chapter-11.pmd

Accounts from Incomplete Records 449

11.4.4 Ascertainment of Missing Information through Summary of Cash

Sometimes, the amount paid to creditors or the amount received from debtors
or the opening or closing cash or bank balance may be missing. To ascertain
any missing item of receipt or payment, we may prepare a cash book summary
showing all receipts and payments during the year and the balancing figure is
taken as the amount of missing item.
If however, both amount paid to creditors and that received from debtors
are missing, then any one of these may be obtained first through the total
creditors or total debtors account, as the case may be, and the other missing
information ascertained from the cash book summary in the same way as
stated earlier.
After the missing figures have been traced out, the final accounts may be
prepared straight away or after the preparation of the trial balance. The
components of the trial balance and their sources of information are
summarised below :

1. Closing assets (except stock) and Closing list
liabilities
2. Opening assets (including opening Opening list
stock) and liabilities
3. Purchases Credit purchases from total creditors account
and cash purchases from summary of cash
4. Sales Credit sales from total debtors account and cash
sales from summary of cash
5. Opening capital Opening statement of affairs
6. Expenses and Revenues As per cash summary of cash plus subsidiary
informatioon
7. Losses and Gains From all the accounts and scattered information
8. Bills receivable received Total bills receivable account
9. Bills payable accepted Total bills payable account
10. Cash/Bank balance Summary of cash

Fig. 11.7 : Detecting the missing information
Illustration 3
Compute the amount of total purchases and total sales of Mr. Amit from the following
information for the year ending on March 31,2014.
Amount
Rs.
Total debtors as on April 01, 2013 40,000
Total creditors as on April 01, 2013 50,000
Bills receivable as on April 01, 2013 30,000
Bills payable as on April 01, 2013 45,000
Discount received 5,000
Bad debts 2,000
Return inwards 4,000
Discount allowed 3,000

2015-16