Incomplete Records

This topic contains 5 replies, has 3 voices, and was last updated by Avatar of Plen Plen 3 years, 4 months ago. This post has been viewed 174 times

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  • Avatar of Plen
    Plen
    Moderator
    • Topics: 16
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    A business had on 1 jan 2008 trade accounts receivable of $2000, cash in the bank of $3000 and cash in hand of $300.

    During the year to 31 dec 2008 the business banked $95000 in takings.

    It also paid out the following expenses in cash from the till:
    Drawings 1200
    Sundry expenses 800

    On 29 Aug 2008 a thief broke into the shop and stole $400 from the till.

    At 31 dec 2008 trade accounts receivable amounted to 3500, cash in bank 2500 and cash in the till 150

    What was the value of sales during the year?

    Can any1 please solve this. Is there a formula to find out Sales figure by opening the cash book method


    avatar
    vrushali
    Participant
    • Topics: 5
    • Replies: 23

    98750? is it right?
    tell me the answer.


    Avatar of mahdiniaacc
    mahdiniaacc
    Member
    • Topics: 1
    • Replies: 60

    You can solve it by drawing of a T account for each necessary balance which given in the question; however,the answer of this question assuming on that all the sales of period were on credit ( not partially in cash ) should be as below :

    receivables


    B/f 2,000 ……………………………….
    Sales 98.750 ………………………….
    ……………………………..Till 97,250
    …………………………….. C/f 3,500


    100,750 …………………… 100,750

    Till


    B/f 300 …………………………………
    Receivables 97.250 …………………
    ……………………… Banking 95,000
    ……………………… Drawings 1,200
    ……………………….. Expenses 800
    ……………………… Stolen cash 400
    ………………………………… C/f 150


    97,550 ………………………. 97,550

    Good luck


    Avatar of Plen
    Plen
    Moderator
    • Topics: 16
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    yes the answer is 98750 thank u so much mahdi and vrush.

    @mahdi: when do we assume sales on credit?


    Avatar of mahdiniaacc
    mahdiniaacc
    Member
    • Topics: 1
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    I just reviewed again the opposite of my assumption and got the same answer too, therefor this assumption is not necessary. Actually I wanted to say that all received debts should be received by the till ( not partially by the bank ) because we don’t have all turnover of the bank account.


    Avatar of Plen
    Plen
    Moderator
    • Topics: 16
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    point noted :) thank u mahdi Good luck to u too :)

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