Cash Book (Extract) ₦ ₦ Balance b/f 2,200 Sundry expenses 16,800 Drawings 4,700 Receipt from customers 16,400 Suppliers 7,300 Debtors opening and closing ba...

Assessment: JAMB UTME - Principles of Accounts - 2012 Subject: Financial Accounting

Question 1 Report

Cash Book (Extract) 
  ₦   ₦
Balance b/f 2,200 Sundry expenses 16,800
    Drawings 4,700
Receipt from customers 16,400 Suppliers 7,300

Debtors opening and closing balances amount to ₦6,500 and ₦7,600 respectively, What is the sales value?

Answer Details
To calculate the sales value, we need to use the following formula: Sales = Receipts from customers + Closing debtors balance - Opening debtors balance Plugging in the values from the cash book extract, we get: Sales = 16,400 + 7,600 - 6,500 Sales = ₦17,500 Therefore, the sales value is ₦17,500. The formula for calculating sales takes into account the amount of cash received from customers as well as the change in the amount owed by debtors to the company. The opening and closing balances of debtors are also taken into consideration. The resulting figure represents the total sales made during the period.

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