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Trade Receivables on Jan 1st= 10000
Trade Receivables on 31st Jan = 9000
Total receipts (including cash sales of 5000) = 85000What was the total credit sales in january?
My answer was 80000+10000-9000=81000
the CORRECT ANSWER is: 80000-10000+9000=79000.
Can someone correct my understanding
Open a “T” Account for Receivables
Put in the January 1 amount brought forward in the debit side 10,000.
Put in the 31 January balance carried forward in the credit side to carry forward onto the debit side after you have balanced off the account.
Imagine Debit Cash account and therefore credit Receivables account with 80,000 so put 80,000 into the credit side of your T account
Now balance off the account.
Add up the bigger side (that’s the credit side in this case) to 89,000
Put the same figure in the total lines on the debit side
Now add up the debit side and put in the missing figure which will then make that side add up to 89,000
And the missing figure is …..?
You should have managed all that yourself if you have been following johnmoffat lectures on the screen – it really isnt all that difficult coz im not an expert but i can understand this
thanks…but i found another easy way:
opening bal+total debits-total credits=closing balance….if u keep the sign convention consistent….u cant go wrong
which of john’s lectures..can u send me a link
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