- This topic has 5 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
P is a sole proprietor whose accounting records are incomplete. All sales are cash sales and during the year $50,000 was banked, including $5,000 from sale of a business car. He paid $12,000 wages in cash and drew $2,000 per month as drawings. The cash at the beginning and end of year was $300 and $400 respectively.
What were P’s sales for the year?
Please do not simply type out full questions and expect to be provided with a full answer. You must have an answer in the same book which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
He paid 50,000 into the bank, but this was after taking out 12,000 in wages and 24,000 in drawings. In addition, the cash balance increased over the year by 100 – this is cash received that was not paid into the bank.
Therefore the total cash received must have been 50,000 + 12,000 + 24,000 + 100 = 86,100.Of this amount, 5,000 was from the sales of a car, so the sales were the remainder of the 86,100.
Sorry for the trouble sir. Sir, the answer for sales is given 81,100. How is that coming. Also can you explain how you got the 100?
You have clearly not read my previous reply properly.
I make it clear that the answer is 81,100 (read the last line of my reply).
I also explain in the second paragraph of my reply about the 100 !!!
- The topic ‘Sole Proprietorship’ is closed to new replies.