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 | 160,000 |
| Cash received from credit customers and paid into the bank | 500,000 |
| Expenses paid out of cash received from credit customers before banking | 3,000 |
| Irrecoverable debts written off | 4,000 |
| Refunds to credit customers | 6,000 |
| Discounts allowed to credit customers | 4,000 |
| Cash Sales | 70,000 |
| Closing accounts receivables | 20,000 |
What is the sum that should appear in Alpha's trading account for sales?
Suggested Solution
| Opening ar | 160,000 | |
| Cash received | 500,000 | |
| Expenses paid out of cash received | 3,000 | |
| Debts written off | 4,000 | |
| Refunds to credit customers | 6,000 | |
| Discounts allowed | 4,000 | |
| Credit sales | Sales | |
| Closing accounts receivables | 20,000 |
| Total Debit | Sale + 166,000 |
| Total Credit | 511,000 |
Credit Sales + 166,000 -511,000 =20,000
Credit sales =20,000 + 511,000 -166,000
Credit sales = 365,000
| Cash Sales | 70,000 |
| Credit Sales | 365,000 |
| Answer | 435,000 |
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2015 ACCA F3 INCOMPLETE SALES