TASK 2 1.2 (C) Final accounts prep. sample assessment 1

Jana

Qestion is, how do you come to the total of £6940 in that sample assessment ,is that correct?? please see the scenario described below

gross margin 25%
inventory 1st April 06 £5050
sales of £64900 were made
purchases £48390


The trader has a policy of allowing customers to settle their accounts one month after the sale is made
Which of the following is most likely to be the total on the sales ledger at the end of the financial year?
A / 6940
B/ 16225
C/ 64900

Jana

its in the TASK 2 1.2 (C) sample assessment 1 forgot to mention

bolingbroke

I remember this coming up as it is ann odd question, you have to make a lot of assumptions. So you would take that sales figure and divide it by twelve to get 5408, which is a 'as useful as a chocolate teapot' average sales per month figure. So given debtors have a month to pay you are more likely to have a sales ledger figure around the 6940 mark than any of the others.

In the real world however I wouldn't consider it unlikely to see 16225 on the sales ledger of a company selling 640900 a year, 30 days credit or not. So the question is stupid.

Qilian

Hi, I am currently struggling on this question as well. I got the ideal of using the sales figure for the whole year and divide it by 12, but I would like to clarify one question. Does "allowing customers to settle their accounts one month after the sales is made" equal to allowing customers to make the payment within one month? Thanking you in advance.