Workbook Osborne question

Question from page 77 from Osborne workbook.

Trade receivables at the start of the year were £2500 and at the end were £3250. Bank receipts from receivables total £17850, cash sales total £2500 (net of vat). What is the sales revenue figure for the year (net of vat)?
Accordinf to anawers should be £18000 but I could not figure why... please help...

Xx

Comments

  • hal978
    hal978 LondonMAAT, AAT Licensed Accountant Posts: 198
    Cash sales inc. VAT = 2500 * 1.2 = 3,000
    Increase in receivables = 3250 - 2500 = 750
    Sales inc. VAT = 17,850 + 3,000 + 750 = 21,600
    Sales = 21,600 / 1.2 = 18,000
  • zgniotka
    zgniotka Registered Posts: 10
    Thanks for your help!
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