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2. And 3 . 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:
$
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 ledgers 2,000
Trade receivables, 30 June 20X6 181,000
Trade payables, 30 June 20X6 84,000What figure should appear for purchases in Annie’s statement of profit or loss for the year ended 30 June 20X6?
a) $325,840
b) $330,200
c) $331,760
d) $327,760
Surely you have an answer in whichever book you found the question, and you should use this forum to ask about whatever in the answer you do not understand!!
(If your book does not have an answer, then you should be using a different book 🙂 )The answer is: 302,800 + 2,960 + 2,000 + 84,000 – 60,000 = 331,760
I suggest that you watch my free lectures on control accounts.
Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
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