The following information is relevant to the calculation of the sales figure for Alpha, a sole trader who does not keep proper accounting records:
Opening accounts receivables | 20,000 |
Cash received from credit customers and paid into the bank | 800,000 |
Expenses paid out of cash received from credit customers before banking | 9,000 |
Irrecoverable debts written off | 7,000 |
Refunds to credit customers | 7,000 |
Discounts allowed to credit customers | 4,000 |
Cash Sales | 60,000 |
Closing accounts receivables | 60,000 |
What is the sum that should appear in Alpha's trading account for sales?
Suggested Solution
Opening ar | 20,000 | |
Cash received | 800,000 | |
Expenses paid out of cash received | 9,000 | |
Debts written off | 7,000 | |
Refunds to credit customers | 7,000 | |
Discounts allowed | 4,000 | |
Credit sales | Sales | |
Closing accounts receivables | 60,000 |
Total Debit | Sale + 27,000 |
Total Credit | 820,000 |
Credit Sales + 27,000 -820,000 =60,000
Credit sales =60,000 + 820,000 -27,000
Credit sales = 853,000
Cash Sales | 60,000 |
Credit Sales | 853,000 |
Answer | 913,000 |
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2015 ACCA F3 INCOMPLETE SALES