TOTALLY CONFUSED

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
I am a bit confused , am doing a practice exam for unit 5 and am a bit stuck on how to answer the following questions or what they actually are asking
so here goes
1) calculate the total value of credit sales ? and purchases
is that when you reconstruct the SLCA and PLCA


2) calculate the total sales for year end
is this just cash sales plus credit sales ?


3)calculate the value of closing stock ?

Any Ideas

Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TOTALLY CONFUSED

    Hi

    You are bang on for one and two, control accounts allow you to work out the total purchases and total sales and total sales usually does include credit sales and cash sales (depending on what you have been given).

    For closing stock it depends what the questions gives you to help work it out - might be able to help if you post the info it has given you.

    Hope that helps,

    Torix
    Im sure some of the past exam papers on this site had control accounts in (can't totally remember) so the answers might help too.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TOTALLY CONFUSED

    1) calculate the total value of credit sales ? and purchases
    is that when you reconstruct the SLCA and PLCA

    they should give you the closing balance as in balance c/d and an opening balance and then either payment from creditors or debtors then you can work out the purchases or sales


    2) calculate the total sales for year end
    is this just cash sales plus credit sales ?

    yes total purchases is credit plus cash sales plus any other sales you can think of :)

    3)calculate the value of closing stock ?
    this is opening stock - closing stock = cost of sales

    sales - cost of sales = gross profit

    what information do they give you just an opening stock figure ??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TOTALLY CONFUSED

    BLANK
    The only information is an opening stock figure , still dont get how to work it out , thanks
    LM1
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TOTALLY CONFUSED

    Yello

    people r right bout caculating cr sales & cr purchases.

    Total sales r cr sales + cash sales.

    With out looking at question i can't be sure but to work out closing stock u need 2 re constuct a trading account.

    Sales..................................................................(insert your figure)


    Opening Stock................(Insert your figure)
    +Purchsaes....................(insert your figure)
    -Closing Stock...........................?

    =Cost of goods sold................... ?


    The question should say something about a profit margin. this means u can work out cost of goods sold. therefore work backwards to work out closing stock,

    sweet inabit

    tom
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TOTALLY CONFUSED

    The only other thing that you might have is an accrued income figure which you may need to use to adjust your sales.

    It would probably help if you can post the whole question.

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:TOTALLY CONFUSED

    yello

    accrued income would affect an income account such as rent recieved and would appear on the p+l a/c. therefore would not affect the trading a/c.

    sweet inabit

    tom

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