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Practice Assessment 2, Task 1




How do we calculate Receipts from Trade Receivables and Receipts from Trade Payables?

Answers

  • GMS1992GMS1992 Registered Posts: 27
    You should look back over "T" accounts.
    Use the opening and closing figures and turnover and purchase figures.
    Be careful that a percentage of turnover is cash so will not be included in trade receivables.
  • gabriellenlewisgabriellenlewis AAT Student Posts: 129
    GMS1992 said:

    You should look back over "T" accounts.
    Use the opening and closing figures and turnover and purchase figures.
    Be careful that a percentage of turnover is cash so will not be included in trade receivables.

    If closing receivables figure for period 5 was 890 and closing in period 6 was 845 then that would surely mean 45 had been received (receipts) in that period?

    Or if i do this:

    1520 (turnover) + 45 (received) = 1565
    1565 - 304 (cash) = 1261

    I get the correct answer, but if i'm subtracting the cash received then i should be left with receivables received plus receivables outstanding?!
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