GROUP 3E

FAC 1502 SEMESTER 1- 2016

UNISA
INCOMPLETE RECORDS
[STUDY UNIT 17]
Prepared by RAMASHAU ALUWANI
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

LINE-UP

INTRODUCTION
BACKGROUND
MUST DO EXERCISES
GROUP WEEKLY ACTIVITY
TICK-BOX
INSPIRATIONAL POEM

2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

INTRODUCTION
Dear Honourable Members

We are almost there to complete our study units. The

question is how far are you?
NB. Previous question papers are available under main site FAC1502-16-S1.

I would like to find out from you which topic you need
further clarity.
Kind regards

Mr. Ramashau Aluwani

UNISA E-Tutor: FAC 1502 (Group 3E)
Many of lifes failures are people who did not realize how close they were to
success when they gave up. Thomas A. Edison
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

BACKGROUND
When accounting transactions have not been recorded according to the
double-entry system, the records are incomplete.
Sometimes, the owners or management of small businesses, non-profit
organisations and occasionally even larger firms know very little about
basic accounting and either keep no records at all or keep some records on
a single-entry basis.
Incomplete records also occur when financial data has been lost, stolen or
destroyed by fire.
Calculation of estimated profit or loss from incomplete records
Equity = Assets Liabilities
The profit or loss for the period can be calculated by subtracting the
equity at the beginning of the period from the equity at the end of the
period. Adjustments must then be made for any income or expenditure
not yet accounted for and for drawings or additional capital contributions
made by the owners.
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

CALCULATION OF ESTIMATED PROFIT /LOSS FROM

INCOMPLETE RECORDS
Equity at the end of the period (before adjustments)
minus
Equity at the beginning of the period
plus
Income not yet accounted for
minus
Expenses not yet accounted for
plus
Drawings
Minus
Additional capital contributions
equals
Estimated net profit or loss for period
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

PREPARATION OF ACCOUNTS FROM

INCOMPLETE RECORDS

STEPS 1
Prepare a statement of assets and liabilities as at the beginning of the period to
determine the equity as at the beginning of the period.
STEP 2
The first account to be reconstructed should be the bank account. Make a
summary of the bank account for the financial period. The counterfoils of
cheques, deposit slips and the bank statements can be used as reference.
STEP 3
Establish whether a float or petty cash is in use. If one is, summarize all receipts
and payments in the float or petty cash account and determine any cash on hand
STEP 4
Once satisfied that all the journals have been completed and that all postings
have been made to the ledger accounts, the accounts must be balanced, and a
trial balanced prepared account.
STEP 5
Compile the financial statements

2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

WHERE MINIMAL RECORDS ARE KEPT

STEP 1
Make a list of all assets and liabilities as at the beginning of the financial
period
STEP 2
Calculate the capital as at the beginning of the period
STEP 3
Prepare a summary of the bank account for the year by using cheque
counterfoils, deposit slips and bank statements as reference
STEP 4
Ascertain the balances of the assets and liabilities at the end of the period
STEP 5
The next step is to calculate the figures fro purchases and sales
STEP 6
Where accruals and prepayments exist for income and expenditure items,
the amounts which must be disclosed in the statement of comprehensive
income need to be calculated.
STEP 7
All the required information is now available and the financial statements
can be prepared
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

MUST DO EXERCISES
PREVIOUS QUESTION PAPERS
QUESTION 5 (MAY-JUNE 2014)
QUESTION 3 (MAY-JUNE 2013)
TUTORIAL LETTER
TUTORIAL LETTER 102-QUESTION 6

STUDY GUIDE
EXERCISE 17.1 (PAGE 343)
EXERCISE 17.2 (PAGE 347)
REVISION EXERCISE 1 (PAGE 350-351)
REVISION EXERCISE 2 (PAGE 353)
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UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

GROUP 3 ACTIVITY
THIS WEEK YOU ARE REQUIRED TO ATTEMPT
QUESTION 5 OF JUNE 2014 EXAM PAPER
MAKE SURE YOU PARTICIPATE ON THE
DISCUSSION FORUM
THIS IS GOOD QUESTION TO ASSESS
YOURSELF IF YOU HAVE UNDERSTOOD THE
PRINCIPLES.
ALL THE BEST
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

TICKBOX
ALMOST THERE TO THE FINISHING LINE!
NO.

TOPIC

STATUS

STUDY UNIT 1-5

DONE

STUDY UNIT 6

DONE

STUDY UNIT 7

DONE

STUDY UNIT 8

DONE

STUDY UNIT 9

DONE

STUDY UNIT 11

DONE

STUDY UNIT 13

DONE

STUDY UNIT 15

NOT DONE

STUDY UNIT 16-NON-PROFIT ENTITIES

DONE

10

STUDY UNIT 17-INCOMPLETE RECORDS

DONE

11

ASSIGNMENT NO. 1

DONE

12

ASSIGNMENT NO. 2

DONE

2016-04-27

TICK

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

10

INSPIRATION POEM
Don't Quit
When things go wrong as they sometimes will,
When the road you're trudging seems all uphill,

When funds are low and the debts are high,

And you want to smile, but you have to sigh.

When care is pressing you down a bit.

Rest, if you must, but don't you quit.
Life is queer with its twists and turns

As every one of us sometimes learns.

And many a failure turns about

When he might have won had he stuck it out:

Don't give up though the pace seems slow You may succeed with another blow.

Success is failure turned inside out The silver tint of the clouds of doubt.

And you never can tell how close you are.

It may be near when it seems so far:

So stick to the fight when you're hardest hit

It's when things seem worst that you must not quit.
by: Unknown Author

2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

11

COUNTDOWN TO EXAM!

GO FOR GOLD!

THANK YOU
2016-04-27

UNISA E-TUTOR: A RAMASHAU FAC1502-S1-16 GROUP 3E

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