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Sir could you tell me the steps at arriving to the answer for the following question:
Bpp revision kit 2018 page no 99, q 20.12
If you want me to type out the question, please do reply!
Not all of the cash received from customers was paid into the bank, some of the cash from them was used to pay expenses. So the total cash received from credit customers must be the amount paid into the bank plus the amount used to pay expenses.
There are no opening or closing receivables, and therefore the credit sales must have been the cash received from credit customers plus the irrecoverable debt written off.
Having got the credit sales, we simply add on the cash sales in order to get the total sales.
I sort of figured it out after typing out this question, but thank you sir for making it a 100% clear. Love how you explain everything with such clarity!
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