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 | 100,000 |
| Cash received from credit customers and paid into the bank | 400,000 |
| Expenses paid out of cash received from credit customers before banking | 9,000 |
| Irrecoverable debts written off | 1,000 |
| Refunds to credit customers | 1,000 |
| Discounts allowed to credit customers | 1,000 |
| Cash Sales | 60,000 |
| Closing accounts receivables | 80,000 |
What is the sum that should appear in Alpha's trading account for sales?
Suggested Solution
| Opening ar | 100,000 | |
| Cash received | 400,000 | |
| Expenses paid out of cash received | 9,000 | |
| Debts written off | 1,000 | |
| Refunds to credit customers | 1,000 | |
| Discounts allowed | 1,000 | |
| Credit sales | Sales | |
| Closing accounts receivables | 80,000 |
| Total Debit | Sale + 101,000 |
| Total Credit | 411,000 |
Credit Sales + 101,000 -411,000 =80,000
Credit sales =80,000 + 411,000 -101,000
Credit sales = 390,000
| Cash Sales | 60,000 |
| Credit Sales | 390,000 |
| Answer | 450,000 |
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2015 ACCA F3 INCOMPLETE SALES