You have been provided with the following information for the reporting period ended 31 December 2019:€Trade receivables balance:as at 31 December 201836,600as at 31 December 201921,840Discounts allowed3,600Discounts received2,120Sales returns8,700Bad debts12,500Cheques received as payment for credit salesCash received as payment for credit salesBad debts provision:345,20051,600as at 31 December 20184,400as at 31 December 20196,900All cheques and cash received had been lodged in full to the bank account by the reporting date.Requirement What is the revenue figure to be presented in the statement of profit or loss for the reportingperiod ended 31 December 2019?

Discount allowed is a contra sales account. It reduces the revenue. Discount received reduces the…

Answered: Requirement What is the revenue figure…

Requirement What is the revenue figure to be presented in the statement of profit or loss for the reporting period ended 31 December 2019?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

You have been provided with the following information for the reporting period ended 31 December 2019:
€
Trade receivables balance:
as at 31 December 2018
36,600
as at 31 December 2019
21,840
Discounts allowed
3,600
Discounts received
2,120
Sales returns
8,700
Bad debts
12,500
Cheques received as payment for credit sales
Cash received as payment for credit sales
Bad debts provision:
345,200
51,600
as at 31 December 2018
4,400
as at 31 December 2019
6,900
All cheques and cash received had been lodged in full to the bank account by the reporting date.
Requirement What is the revenue figure to be presented in the statement of profit or loss for the reporting
period ended 31 December 2019?

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