Sarah Glass. Practice Exam 1

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Hi, can anyone help with incomplete records. I'm going round in circles!!! I need to find Credit Sales, total sales, purchases & closing stock. It would be a real help if someone could give me the calculation/formula. <BR>Thanks Dotty

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sarah Glass. Practice Exam 1

    I haven't looked at that one yet, but I can forward you the answers if that's any help?<BR><BR>Your e-mail address isn't on your profile?<BR><BR>Lynn
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sarah Glass. Practice Exam 1

    Thanks that would be great. Please send to hayley@amanda2111.wanadoo.co.uk<BR><BR>Thanks again!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Sarah Glass. Practice Exam 1

    Hello, Dotty.<BR><BR>The <i>calculation/formual</i> is:<BR><BR>1. Draw the 'T' account<BR>2. Enter the information you already have<BR>3. Find the balancing figure<BR><BR>A)<BR>For example, take Credit Sales. You will have been told 1. the sales ledger opening balance (in last year's balance sheet as <i>Debtors</i> or similar) 2. the sales ledger closing balance (in the information provided) 3. the receipts from customers (credited to the bank and shown on the statement. 4. You know the accounts balance. The balancing figure must be the credit sales.<BR><BR>So, if you have last year's debtors at £100 and this year's debtors at £50 and receipts of £200, the credit sales must be £150 in order to balance the ledger.<BR><BR>B)<BR>Total Sales will be the total of the figure above (£150 in my example) plus Cash Sales from the bank statement.<BR><BR>C)<BR>The same principle applies to purchases.<BR><BR>D) Once you have Sales and Purchases, you can calculate (or you will have been told) the usual profit margin so as to work out the value of stock shipped. You will have been given an opening stock figure, even if it's zero. All you have to do is put the Opening Stock, Purchases, and Sales at Purchase Price into a 'T' account and balance it to find the closing stock.<BR><BR>Remember, the exam talks you through the calculations. It's asking you to use the figures you've just worked out to find more. In real life, you may have to find all these things. The exam talks you through the logical steps.<BR><BR>Hope this helps.<BR><BR>Mike<BR>

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