Bello Traders operates a business with incomplete records. The following details were extracted from the business records for the year ended 31 December 2025:
| Item | Amount (₦) |
|---|---|
| Debtors balance at 1 January 2025 | 45,000 |
| Debtors balance at 31 December 2025 | 62,000 |
| Cash received from trade debtors | 215,000 |
| Discount allowed to trade debtors | 4,500 |
| Returns inwards | 6,000 |
| Bad debts written off | 3,500 |
| Cheques received from debtors dishonoured | 5,000 |
| Cash sales for the year | 88,000 |
Calculate the total sales for the year ended 31 December 2025.
Answer: 329000 ₦
Answer
The total sales for the year ended 31 December 2025 is ₦329,000.
The total sales of ₦329,000 is determined by adding derived credit sales (₦241,000) obtained from the Total Debtors Control Account to cash sales (₦88,000).
Step-by-Step Solution
Key Concept
Derivation of credit sales from total debtors control account and addition of cash sales to determine total turnover.