Question

From the following information, ascertain the opening balance of Sundry Debtors and the closing balance of Sundry Creditors:
Sundry Creditors as on 31st March, 2017 – Rs. 20,600
Sundry Debtors as on 31st March, 2018 – Rs 37,400
Stock as on 31st March, 2017 –Rs 26,000
Stock as on 31st March, 2018 – Rs 24,000
During the year ended 31st March, 2018:
Purchases – Rs 1,10,000
Discount allowed by creditors – Rs 800
Discount allowed to customers – Rs 1,100
Cash paid to sundry creditors – Rs 95,000
Bills Payable issued by them – Rs 14,000
Bills Receivable received from customers – Rs 16,500
Cash received from customers – Rs 1,30,000
Bills receivable dishonoured – Rs 1,900

Answer 1

Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
Cost of Goods Sold = 26,000 + 1,10,000 – 24,000 = 1,12,000
Gross Profit = 30/70 x 112000 = Rs. 48,000
Sales = Cost of Goods Sold + Gross Profit
Sales = 1,12,000 + 48,000 = Rs 1,60,000
Credit Sales = 1,60,000 – 20,000 = Rs 1,40,000