Accounting (AS)·Incomplete records · NSSCAS 3.1.1

Mark-up, margin & preparing the full statements

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A trader with incomplete records is missing figures — but a mark-up, a margin or an inventory turnover rate can unlock every one of them. In this capstone lesson you learn the conversion trick between mark-up and margin, use each technique to find missing sales, cost of sales and inventory, and then assemble the full income statement and statement of financial position for a Windhoek trader. Incomplete records is a favourite Paper 1 structured question, and the examiner almost always hides one figure behind a percentage.

What you'll learn in this lesson

By the end you should be able to (NSSCAS Accounting (AS) 3.1.1):

  • apply the following techniques to arrive at missing figures: mark up, margin, rate of inventory turnover
  • make the other adjustments as detailed in Theme 2, Unit 2.1
  • prepare an income statement using all the information available
  • prepare a statement of financial position using all the information available
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Mark-up, margin & preparing the full statements · NSSCAS Accounting (AS) · namstudy