Incomplete records: preparing the statements

Many small traders do not keep full double-entry records. The accountant rebuilds the missing figures from bank statements, invoices and lists of what is owed, then prepares the statements.

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Step 1: opening capital

A statement of affairs lists assets and liabilities at the start of the year. Capital (equity) = assets − liabilities.
Sam's statement of affairs at 1 January£
Equipment12 000
Inventory3000
Trade receivables2500
Bank1800
Less trade payables(1900)
Capital at 1 January17 400

Step 2: the bank summary

List receipts and payments from the bank statements to find the closing bank balance (or a missing figure such as drawings).
Bank summary for the year£
Opening balance1800
Receipts from credit customers46 000
Cash sales banked8000
Payments to suppliers(30 500)
Expenses paid(9200)
Drawings(11 000)
Closing balance5100

Step 3: sales and purchases

Use the logic of the control accounts:
Credit sales = receipts from customers + closing receivables − opening receivables = 46 000 + 3100 − 2500 = £46 600. Total revenue = 46 600 + cash sales 8000 = £54 600.
Credit purchases = payments to suppliers + closing payables − opening payables = 30 500 + 2300 − 1900 = £30 900.

Step 4: the statements

Closing capital = 17 400 + 13 900 − 11 000 = £20 300. Check: closing net assets = equipment 10 800 + inventory 3600 + receivables 3100 + bank 5100 − payables 2300 = £20 300.
Sam: income statement for the year£
Revenue54 600
Cost of sales: 3000 + 30 900 − 3600(30 300)
Gross profit24 300
Expenses(9200)
Depreciation of equipment(1200)
Profit for the year13 900
Worked example

Opening trade receivables £4000, closing £5200. Receipts from credit customers £38 000. Cash sales £6000. Find total revenue.

  1. Credit sales = 38 000 + 5200 − 4000 = 39 200
  2. Total revenue = 39 200 + 6000

Answer: £45 200

Key idea

Opening capital comes from a statement of affairs (assets − liabilities). A bank summary gives the closing bank balance. Credit sales = receipts + closing receivables − opening receivables; credit purchases = payments + closing payables − opening payables. Then prepare the statements as usual.

Key words
Incomplete records
When a business does not keep full double-entry records, so figures must be worked out from other information.
Capital
The owner's investment in the business; assets minus liabilities.
Statement of affairs
A list of assets and liabilities at a date, used to find capital when records are incomplete.
Drawings
Money or goods taken out of the business by the owner for private use.
Revenue
Income from the sale of goods or services (sales less sales returns).

All International GCSE Accounting key terms and definitions →

Quick check

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Extra practice

2 more questions

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  1. At the start of the year a trader has assets of £42 800 and liabilities of £9600. What is opening capital?

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    Answer: 33200

    £42 800 − £9600 = £33 200.

  2. Receipts from credit customers £64 000; opening receivables £5400; closing receivables £7200. What are credit sales?

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    Answer: 65800

    £64 000 − £5400 + £7200 = £65 800.

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Sources and references

Checked by the GCSE-ready editorial team, 17 October 2026. Last updated 2 October 2026. Spotted a mistake? Tell us and we will fix it.

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