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$
Trade receivables, 1 July 20X5
130,000
Trade payables, 1 July 20X5
60,000
Cash received from customers
686,400
Cash paid to suppliers
302,800
Discounts allowed
1,400
Discounts received
2,960
Contra between payables and receivables ledger
2,000
Trade receivables, 30 June 20X6
181,000
Trade payables, 30 June 20X6
84,000
What figure should appear in Annie’s statement of profit or loss for the year ended 30 June 20X6 for purchases?My question is that what will we do with contras whether we will provide the balance for payables only or anything else
A contra entry is always debit payables and credit receivables.
(So it will affect your calculation of both sales and purchases)Have you watched my free lectures on this? The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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