Cash sale — OpenTuition Forums

AAlexa11y ago

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 918Dr Cash 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!

John MoffatTutor11y ago#1

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)

AAlexa11y ago#2

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?

John MoffatTutor11y ago#3

That is correct :-)

RRaju5y ago#4

How is the answer 10546? Could you explain the steps for this please?

John MoffatTutor5y ago#5

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 $918 To make the account balance, there is a missing figure of $10546 debit. Therefore this must be the cash received from the cash sales.