Completing Financial Statement

The video tutorial guides viewers through the process of completing financial statements for Mr. Jack, whose accountant left mid-preparation. It covers filling in missing figures in the trading account, calculating gross profit and sales, completing the profit and loss account with missing expenses, and finalizing the capital account and balance sheet. The session concludes with a review of the completed work, emphasizing the importance of accuracy in financial documentation.

What was the main issue Mr. Jack faced with his financial statement?

• His accountant left before completing it.

• He lost all his financial records.

• He had incorrect figures in his statement.

• He did not have any financial statement.

How is the gross profit calculated in the trading account?

• As a percentage of sales.

• Using last year's profit figures.

• Based on the cost of goods sold.

• By subtracting expenses from revenue.

What is the method used to calculate the sales figure?

• Adding opening stock and purchases, then subtracting closing stock.

• Subtracting opening stock from purchases.

• Adding closing stock to purchases.

• Using last year's sales figures.

How is the outstanding salary recorded in the profit and loss account?

• As a prepaid expense.

• As a liability.

• As a revenue.

• As an asset.

What percentage of debtors is considered as bad debts?

• 5%

• 15%

• 20%

• 10%

How are creditors calculated in the balance sheet?

• On the basis of purchases.

• As a percentage of total assets.

• Based on sales figures.

• Using last year's creditor figures.

What was the reason for the balance sheet not tallying initially?

• Omitted salary payable.

• Incorrect calculation of sales.

• A missing note about new furniture purchase.

• Unrecorded depreciation.