ACCA FA2 VALUE OF SALES
The amount owed to Jane by her customers at 31 October was $20,000. A year earlier she was owed $80,000.
During the year Jane had lodged $860,000 to her bank account. This included payments received from her customers as well as $60,000 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 | 80,000 | cash received from customers | 800,000 |
| Sales | ??? | ||
| closing balance | 20,000 |
Cash received from customers = Total receipt - Sales of holiday home
= $860,000 -$60,000
=$800,000
Sales = $20,000 + $800,000 -$80,000
Answer = $740,000
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Value of Sales
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