unit 5

meibaker

when you calculate the credit sales, is it right to use receipts from debtors+ debtors at the beginning of the year - debtors at the end of the year.
if so, is it the right format to calculate other stuff like accruals and prepayment? thanks

katsutlieff

Have just done this today :thumbup:

Sales for year= receipts from debtors in the year minusdebtors at the beginning of the year plus debtors at the end of the year

Accruals and prepayments come into play for Expenses

Expenses for the year= bank and cash payments minus accruals or plus prepayments at the beginning of the year plus accruals or minus prepayments at the end of the year.

Hope this makes sense

meibaker

thanks so so so much for your help.
best wishes.