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The company has opening trade receivables (debtors) of £20,000 and closing trade receivables of £15,000. Sales...

The company has opening trade receivables (debtors) of £20,000 and closing trade receivables of £15,000. Sales for the year was £60,000. How much cash was received from trade receivables during the year?

a. £95,000

b. £5,000

c. £25,000

d. £65,000

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Answer #1

The company has opening trade receivables (debtors) of £20,000 and closing trade receivables of £15,000. Sales for the year was £60,000. How much cash was received from trade receivables during the year?

a. £95,000

b. £5,000

c. £25,000

d. £65,000

Option D is Correct Option

  • Calculaion is under
Trade receivables (debtors)
Particulars Amount $
Opening balance 20,000
less : Cash(?) 5000
Closing Balance 15,000

Sales for the year was £60,000. so its a cash transaction.

so that cash recevied £60,000 + 5000 debtor Cash = £65,000

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