LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Sales calculation

rajeev (nnnone) (222 Points)

12 April 2014

Dear friends, If a company sold 25 % of the goods on cash basis and the balance on credit basis. Debtors are allowed 2 months credit and their balance as on 31.3.08 is Rs. 140000 . Assume that the sale is uniform through out the year. what will be the total sales of the Co. for year ended 31.03.08. also does step marking given, if whole question is not right.

Reply
Follow
Share

3 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 12 April 2014

Originally posted by : rajeev
	Dear friends, If a company sold 25 % of the goods on cash basis and the balance on credit basis. Debtors are allowed 2 months credit and their balance as on 31.3.08 is Rs. 140000 . Assume that the sale is uniform through out the year. what will be the total sales of the Co. for year ended 31.03.08. also does step marking given, if whole question is not right.

Debtors as on 31.3.2008 = Rs. 1,40,000
.
Credit period allowed = 2 months
(i.e. Debtors as on 31.3.2008 is standing for credit sales of Feb and Mar 2008)
Credit sales per month (Rs. 1,40,000/2) = Rs. 70,000
.
Credit sales for the year 2007-2008 (Rs. 70,000 X 12) = Rs. 8,40,000
.
Add: Cash sales (Rs. 8,40,000 X 25/75) = Rs. 2,80,000
.
Total sales of the company for the year ended 31.3.2008 = Rs. 11,20,000
..
And yes, step by step marking is there while checking the papers.