WAEC Accounting 2011 Paper

Concept:In incomplete records, capital is determined by preparing a Statement of Affairs.Explanation:A Statement of Affairs summarises all assets and liabilities at a given date.Capital is the excess of total assets over total liabilities:$$\text{Capital} = \text{Total Assets} - \text{Total Liabilities}$$From income records, this statement helps find the opening or closing capital indirectly.Hence, the correct method is preparing the Statement of Affairs.Answer:B. statement of affairs