A trader provided the following data:ItemJan 1 ()Dec 31 ()Bank (Debit)4,2406,320Cash balance264271During the year: Cheques issued were 19,950. All sales takings were banked except for 5,400 used for drawings and 7,200 for wages. Additionally, 3,000 was banked from the sale of a motor vehicle. Calculate total sales.

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SSC Financial and Cost Accounting P-1 QUESTION #6082

Question 1

A trader provided the following data:

Item	Jan 1 ($)	Dec 31 ($)
Bank (Debit)	4,240	6,320
Cash balance	264	271

During the year: Cheques issued were $19,950. All sales takings were banked except for $5,400 used for drawings and $7,200 for wages. Additionally, $3,000 was banked from the sale of a motor vehicle. Calculate total sales.

$22,037
$31,630
$31,637✔️
$34,637

Correct Answer Explanation

1. Cash banked from sales = Closing Bank ($6,320) + Cheques issued ($19,950) - Opening Bank ($4,240) - Sale of Asset ($3,000) = $19,030.
2. Total Sales = Banked Sales ($19,030) + Cash Drawings ($5,400) + Cash Wages ($7,200) + (Closing Cash $271 - Opening Cash $264) = $19,030 + $5,400 + $7,200 + $7 = $31,637.

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