Question

Mulan Manila Ltd uses accrual basis accounting to prepare its financial statement. The following information can be found from the general ledger accounts.

Mulan Manila Ltd
	30-Jun
	2021	2020
Account receivable	$23,200	$27,800
Inventory	$5,220	$4,830
Prepaid rent	$1,250	$1,750
Account payables	$25,100	$28,300
Salaries payables	$2,800	$3,000
Sales revenue	$33,750
Cost of Goods sold	$17,500
Expenses (including 23000 depreciation)	$125,000

Required

1. Use the T-account to calculate the amount of cash collected from customers during 2021.
2. Use the T-account to calculate the amount of cash paid to suppliers and employees during 2021.

(a)

Cash collected from customers

		Account receivable

(b)

Cash paid to suppliers and employees

		Account payables
		Inventory

Answer 1

  Answer:

(a) Cash Collected From customer = $38350.

(b) Cash Paid to Suppliers = $21090.

  

Account Receivable Account

Date	Particulars	Amount	Date	Particulars	Amount
July 01 , 2020	Balance b/d	$27800	June 30,2021	Cash account	$38350
	Sales Revenue	$33750		(Bal. Figure)
			June 30,2021	Balance c/d	$23200
		$61550			$61550

Account Payable Account

Date	Particulars	Amount	Date	Particulars	Amount
June 30,2021	Cash account	$21090	July 01,2020	Balance b/d	$28300
	(Bal. Figure)			Purchase	$17890
June 30,2021	Balance c/d	$25100
		$46190			$46190

*Cost of goods sold = Beginning Inventory + Purchase – Ending Inventory

$17500 = $4830 + Purchase - $5220

$17500 = Purchase - $390

Purchase = $17500 + $390 = $17890.