The following cash summary details were extracted from the incomplete records of Mr. Adebayo for the accounting year ended 31 December 2025:
| Details | Amount (₦) |
|---|---|
| Balance b/f (1 Jan 2025) | 12,000 |
| Receipts from trade debtors | 185,000 |
| Payments to trade creditors | 94,000 |
| Business operating expenses paid | 42,000 |
| Cash banked during the year | 160,000 |
| Cash drawings taken by proprietor | 28,000 |
| Balance c/f (31 Dec 2025) | 15,000 |
Assuming all unbanked cash receipts represent cash sales, what is the value of cash sales for the year?
- ₦142,000Answer
- B₦166,000
- C₦86,000
- D₦154,000
Answer
The total cash sales for the year amounted to ₦142,000.
In single entry and incomplete records, missing cash receipts are determined by reconstructing the summary cash account. Cash sales act as the missing debit balancing figure. Adding all cash payments (creditors ₦94,000 + expenses ₦42,000 + bankings ₦160,000 + drawings ₦28,000) and the closing balance (₦15,000) gives total credits of ₦339,000. Subtracting the opening cash balance (₦12,000) and receipts from debtors (₦185,000) yields ₦142,000.
Step-by-Step Solution
Key Concept
Cash and Bank Summary Analysis for Missing Figures
Estimated Time:2m 0s