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 | 700,000 |
| Expenses paid out of cash received from credit customers before banking | 9,000 |
| Irrecoverable debts written off | 4,000 |
| Refunds to credit customers | 9,000 |
| Discounts allowed to credit customers | 3,000 |
| Cash Sales | 40,000 |
| Closing accounts receivables | 140,000 |
What is the sum that should appear in Alpha's trading account for sales?
Suggested Solution
| Opening ar | 20,000 | |
| Cash received | 700,000 | |
| Expenses paid out of cash received | 9,000 | |
| Debts written off | 4,000 | |
| Refunds to credit customers | 9,000 | |
| Discounts allowed | 3,000 | |
| Credit sales | Sales | |
| Closing accounts receivables | 140,000 |
| Total Debit | Sale + 29,000 |
| Total Credit | 716,000 |
Credit Sales + 29,000 -716,000 =140,000
Credit sales =140,000 + 716,000 -29,000
Credit sales = 827,000
| Cash Sales | 40,000 |
| Credit Sales | 827,000 |
| Answer | 867,000 |
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2015 ACCA F3 INCOMPLETE SALES