ACCA FA2 VALUE OF SALES
The amount owed to Jane by her customers at 31 October was $80,000. A year earlier she was owed $50,000.
During the year Jane had lodged $150,000 to her bank account. This included payments received from her customers as well as $50,000 which Jane had received from the sale of her holiday home.
What was the value of Jane’s sales for the year to 31 October?
Suggested solutions
Receivable Control Account
| DEBIT | CREDIT | ||
| opening balance | 50,000 | cash received from customers | 100,000 |
| Sales | ??? | ||
| closing balance | 80,000 |
Cash received from customers = Total receipt - Sales of holiday home
= $150,000 -$50,000
=$100,000
Sales = $80,000 + $100,000 -$50,000
Answer = $130,000
To do the same topic again in ACCA FA2
Value of Sales
To do another topic in ACCA FA2