Q.Explain how the following may be ascertained from incomplete records:

Each missing figure is found from the right proforma account or statement — statement of affairs for capital, total debtors/creditors for credit sales/purchases and payments/collections, and the cash summary for the closing cash. …

1. Opening and closing capital. Prepare a statement of affairs at the beginning and at the end of the year (assets minus liabilities); the balancing figure on each date is the capital — opening capital from the opening statement of affairs and closing capital from the closing one.
2. Credit sales and credit purchases. Prepare the total debtors account — credit sales appear as the balancing figure; and the total creditors account — credit purchases appear as the balancing figure. …