FSTP sample assessment 1 question 2
FrancesM
Registered Posts: 14
We are given the following infomation:
Office equip 13800
Inventory 5850
Bank debit balance 190
payables 5370
sales 63900 gross sales margin of 25%
purchases 46795
I am able to work out the following
(a)
Assets:19650
Liabilities: 5560
Capital: 14090
(b)
Cogs 47925
(c)
Closing inventory 4720
All of the above is fine, I understand all that.
Question e asks what is the value of the sales ledger and the answer is 6490. I cannot figure out how to get to that figure.
Can anyone help?
Office equip 13800
Inventory 5850
Bank debit balance 190
payables 5370
sales 63900 gross sales margin of 25%
purchases 46795
I am able to work out the following
(a)
Assets:19650
Liabilities: 5560
Capital: 14090
(b)
Cogs 47925
(c)
Closing inventory 4720
All of the above is fine, I understand all that.
Question e asks what is the value of the sales ledger and the answer is 6490. I cannot figure out how to get to that figure.
Can anyone help?
0
Comments

The question doesn't really ask to calculate the figure, just what is the most likely based on what you know.
The total on the sales ledger will be the Sales closing balance. Since we know that Sales for the year are 63900 it's not going to be that. Even allowing Customers a month to pay there will still be Receipts coming in to reduce this figure. Its also unlikely to be greater than Sales for the year, so the most likely answer is 64900 
Thank you. It's a bit of a red herring question0