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Calculate the net sales for Ekerele Enterprises on 31st December 2019, given Sales, Returns Inwards, and Discounts Allowed.

Accounting

ScanSolve AI Answer

Step-by-step solution

3 steps

  1. Define Net Sales.

    Net sales represents the total revenue generated from sales after deducting sales returns, allowances, and discounts.

  2. Identify relevant figures from the Trial Balance.

    From the provided Trial Balance for Ekerele Enterprises on 31st December 2019:

    • Sales (Cr): ₦200,000
    • Returns Inwards (Dr): ₦8,720 (These are sales returns)
    • Discounts (Dr): ₦3,000 (These are discounts allowed on sales)

  3. Calculate Net Sales.

    Net Sales is calculated using the formula:

    Net Sales=Sales−Returns Inwards−Discounts Allowed\text{Net Sales} = \text{Sales} - \text{Returns Inwards} - \text{Discounts Allowed}

    Substitute the values:

    Net Sales=₦200,000−₦8,720−₦3,000\text{Net Sales} = \text{₦}200,000 - \text{₦}8,720 - \text{₦}3,000 Net Sales=₦191,280−₦3,000\text{Net Sales} = \text{₦}191,280 - \text{₦}3,000 Net Sales=₦188,280\text{Net Sales} = \text{₦}188,280

    The net sales for Ekerele Enterprises is ₦188,280.

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