# Help Cash Managment Question from practice test 2 (image included)

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What you need to do is first get the total amount of credit sales for the period, this is 95% of the £482,140 as Cash accounted for 5% of sales

£4821940*.95= 458033

Then add to this the difference in the opening and closing balance of the Trade Recievables,

149620-136280=13340

458033+13340=471373
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thanks for the help but i am afraid i do not understand why this bit has been done 458033+13340=471373?

i see the T account as this could you please explain to me why this is wrong ? i can only grasp in this format sorry

This is how i have it :

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ah think i have sussed it IS is debit not credit ! thanks again:001_smile
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Try this,

On 1st Jan, there is 149,620 outstanding.

During the period concerned 482,140 worth of goods are sold. 5% of this is cash so we can ignore, leaving 458,033 to add to the 149,620 which was already owed. We are therefore now owed 607,653

By 31st March, we are only owed 136,280, meaning that 471,373 must have been paid (607653-136280).

I hope this makes sense. Afraid I can't show a t account as on an ipad, so too tricky to draw, but hopefully this explains the workings.
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Was just going to say that your cash received and balancing figures are on the wrong sides, but you seem to have just figured it out!
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Nps1976 wrote: »
Try this,

On 1st Jan, there is 149,620 outstanding.

During the period concerned 482,140 worth of goods are sold. 5% of this is cash so we can ignore, leaving 458,033 to add to the 149,620 which was already owed. We are therefore now owed 607,653

By 31st March, we are only owed 136,280, meaning that 471,373 must have been paid (607653-136280).

I hope this makes sense. Afraid I can't show a t account as on an ipad, so too tricky to draw, but hopefully this explains the workings.

thanks for this brilliant explanation has helped me understand more so now