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WAEC Financial Accounting 2013 Question 21

Question 21

Incomplete Records

Use the following information to answer questions 20 and 21.
Creditors: 1/6/2011 D2,495; 30/5/2012 D2,285
Debtors: 1/6/2011 D1,215; 30/5/2012 D2,145
Cash paid to creditors: D32,170
Cash received from customers: D40,650
Goods returned to suppliers: D500
Sales for the year is

  1. A.D42,795
  2. B.D42,030
  3. C.D41,580
  4. D.D39,720
Show the answer and explanation

Answer: C (D41,580)

Explanation

Sales = cash received + closing debtors − opening debtors = 40,650 + 2,145 − 1,215 = D41,580.