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 $720,000 to her bank account. This included payments received from her customers as well as $20,000 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 | 700,000 |
| Sales | ??? | ||
| closing balance | 20,000 |
Cash received from customers = Total receipt - Sales of holiday home
= $720,000 -$20,000
=$700,000
Sales = $20,000 + $700,000 -$80,000
Answer = $640,000
To do the same topic again in ACCA FA2
Value of Sales
To do another topic in ACCA FA2