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Annie is a sole trader who does not keep full accounting records. The following details relate to her transactions with credit customers and suppliers for the year ended 30 June 20X6.
A
A $
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?
A
$ the answer is 331.760
why ?
thank youHave you been watching my lectures? They are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
You need to write up a control account for payables (a total payables account). You are given everything needed to be able to write up the t-account apart from the figure for purchases, so this will be the missing figure to make the account balance.
I do suggest that you watch my free lectures on control accounts.
I already watch the lectures and they are great thank you for that
but sometimes I don’t really understand the question itself and with a bit of help all became clear
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