Question 1 Introduction
A statement of affairs can be used to calculate capital at the start of the year.
Incomplete records is where the bookkeeping system uses double-entry principles and a trial balance is available.
The accounting equation is assets + liabilities = capital.
An increase in capital during the year could indicate that a profit has been made.
Purchases for the year = payments to trade payables in year, less trade payables at the beginning of the year, plus trade payables at the end of the year.
A statement of affairs can be used to calculate capital at the start of the year.
Learning
resources for Accounting qualifications