ACCA Applied Skills · Financial Reporting · Preparation of single entity financial statements
Mira Co has trade receivables of $18,000 at the start of the year and $22,000 at the end. Cash received from customers was $176,000 and discounts allowed of $3,000 were given. Credit sales only are made. What is revenue for the year?
Revenue is $183,000. Reconstruct the receivables account: closing balance plus cash received plus discounts allowed, less the opening balance, gives credit sales.
- A$177,000
- B$181,000Correct
- C$175,000
- D$183,000
Explanation
Receivables ledger: opening 18,000 + sales - cash 176,000 - discounts 3,000 = closing 22,000. Sales = 22,000 + 176,000 + 3,000 - 18,000 = $183,000. Without discounts the figure would be $180,000. Correct answer is $183,000 and not $181,000.
Did you get it right without looking?
One question tells you little. A timed set on Preparation of single entity financial statements shows your real accuracy, how long you take and where you lose marks.
More Preparation of single entity financial statements questions
- A fire destroyed part of Yusuf Ltd's inventory records. Opening inventory was $25,000, purchases to the date of the fire were $95,000, and s…
- Ladon Co's profit for the year was $500,000. Other comprehensive income comprised a gain on revaluation of land of $80,000 and a loss of $30…
- Delta Co's trial balance at 31 December 20X5 shows: revenue $900,000; opening inventory $60,000; purchases $520,000; carriage inwards $10,00…
- Dalton Ltd makes all sales at a mark-up of 25% on cost. Opening inventory was $30,000, purchases were $210,000 and closing inventory was $40…
- Kiran, a sole trader, does not keep full records. Opening net assets were $48,000 and closing net assets are $63,000. During the year Kiran …
- At 31 December 20X5 Orla Co has a bank loan of $600,000. Of this, $150,000 is repayable on 30 June 20X6 and the remainder on 31 December 20X…