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how are you sir can you assist on this question
Harry has a mark up 25% on cost of sales .The following info is available
receivables at the first of the year -6340
receivables at the end of the year -5200
cash at the start of the yr -620
cash at the end of year -500
Total cash payment -16780
The only receipts during the year consisted of cash and cheques received from the customers .Whta is the gross profit of year.Why are you attempting a question for which you do not have the answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and workings!
If you write up a quick cash account you can calculate how much cash was received during the year.
If you then write up a quick receivables account, then because you know how much cash was received and you know the opening and closing balances, you can then calculate the sales during the year.
Once you know the sales figure you can get the profit by multiply the sales figure by 25/125.
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