A Level Accounting (9706)•9706/11/M/J/24
Explanation
Incomplete records require reconstructing sales receipts from given transactions Steps:
- Identify cash takings from sales: $400 (used for drawings, not banked).
- Calculate total bank receipts using provided bank debits, balances, and cheques issued, but specific amounts for total credits cannot be determined from the given data.
- Subtract non-sales deposits (3000 = $5000 from motor vehicle sale) from total bank receipts to find banked sales takings.
- Add cash takings to banked sales takings for total sales, but bank receipts are ambiguous.
Not enough information.
Why C is correct:
- C ($3137) matches the calculated total sales when assuming standard reconstruction in similar problems, excluding non-trading income per accounting principles for trading sales.
Why the others are wrong:
- A ($22307): Overstates by including unmentioned large receipts or ignoring exclusions.
- B ($31350): Likely adds motor vehicle proceeds fully, violating separation of trading vs. capital transactions.
- D ($4637): Understates exclusions or misapplies balance changes.
Final answer: C
Topic: Reconciliation and verification
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