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Difficulty: MediumCalculation of Total Sales and Total Purchases

The following information was extracted from the incomplete records of Chukwuma Traders for the year ended 31 December 2025:

Transaction / Account DetailsAmount (NGN\text{NGN})
Trade debtors balance (1 January 2025)12,00012,000
Cash received from trade debtors45,00045,000
Discount allowed to debtors1,2001,200
Returns inwards800800
Bad debts written off500500
Trade debtors balance (31 December 2025)15,50015,500
Cash sales made during the year18,00018,000

Calculate the total sales for the year ended 31 December 2025 in Naira (NGN\text{NGN}).

Answer: 69000 NGN

Answer

The total sales for the year ended 31 December 2025 is NGN 69,000.
Total sales is computed by summing credit sales derived from the Total Debtors Control Account (NGN 51,000\text{NGN } 51,000) and cash sales (NGN 18,000\text{NGN } 18,000), yielding NGN 69,000\text{NGN } 69,000.

Step-by-Step Solution

1
Determine Credit Sales using the Total Debtors Control Account equation
Credit Sales = NGN 51,000\text{NGN } 51,000
The Total Debtors Account credits all items that reduce trade debtors (cash received, discounts allowed, returns inwards, bad debts, and closing balance) and debits opening debtors and credit sales. Rearranging gives: Credit Sales=(45,000+1,200+800+500+15,500)−12,000=63,000−12,000=51,000\text{Credit Sales} = (45,000 + 1,200 + 800 + 500 + 15,500) - 12,000 = 63,000 - 12,000 = 51,000.
2
Add Cash Sales to Credit Sales to find Total Sales
Total Sales = NGN 69,000\text{NGN } 69,000
Total sales comprises both cash sales and credit sales (Total Sales=Cash Sales+Credit Sales=18,000+51,000=69,000\text{Total Sales} = \text{Cash Sales} + \text{Credit Sales} = 18,000 + 51,000 = 69,000).

Key Concept

Reconstruction of Total Sales from Incomplete Records
Estimated Time:2m 0s
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Topics

Calculation of Total Sales and Total Purchases

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