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Dear Tutor,
Can you please tell me the answer by the following example and how can you get the answer as well please.
The following information relates to the accounts of Helter Co for the month of April 20X0:
$
Cash at bank on 1 April 20X0 882Dr
Sales on credit 42,773
Purchases on credit 38,050
Cash at bank at 30 April 20X0 918DrCash received from credit customers amounted to $28,112 and payments to credit suppliers were $38,622.
Assuming there were no other cash transactions what were Helter Co’s cash sales for April 20X0?Thank you in advance!
The cash received from cash sales can be calculated from writing up a cash account.
You know the balance at the start of the year (882), you know the cash received from credit customers (28,112), you know the cash paid out (38,622), and you know the balance left at the end of the year (918).
So the missing figure to make it balance must be the cash received from cash sales.
Surely, the book in which you found the question also shows the answer?
(The free lecture on double entry bookkeeping may help you)
I do not have any answer option just the question.
My answer would be 10546 for the cash received from cash sale. Is it correct?
Easiest is to write up a cash account as I wrote before.
They started the year with a debit balance of $882.
Debit the account with the cash received from credit customers of $28,112
Credit the account with the cash paid to credit suppliers of $38,622
Credit the account with the closing balance of $918To make the account balance, there is a missing figure of $10546 debit.
Therefore this must be the cash received from the cash sales.
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