Question

if cash sales is 400.000 and credit sale is 20% of total sales. Calculate the amount of credit sales : -?

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Answer 1

Answer:

cash sales is 400.00

credit sale=20% total sale

case sale =(80)%=400

total sale =100%=400×100/80=500

credit sale =500×20/100=100

amount of credit sale is 100.00

Answer 2

Given:

• Cash sales = Rs 4,00,000
• Credit sales is 20% of total sales

To find: The amount of credit sales.

Answer:

Total sales = Cash sales + Credit sales

Let's consider the total sales to be 'x'. As per the question, credit sales is 20% of total sales, i.e., 20% × x.

Using the given values in the formula,

x = Rs 4,00,000 + ({20 ÷ 100} × x)

x = Rs 4,00,000 + (x/5)

x - (x/5) = Rs 4,00,000

5x - x = Rs 20,00,000

4x = Rs 20,00,000

x = Rs 20,00,000 ÷ 4

x = Rs 5,00,000

The total sales is Rs 5,00,000. The amount of credit sales is 20% of the total sales.

Credit sales = (20 ÷ 100) × Rs 5,00,000

Credit sales = Rs 1,00,000

Therefore, the credit sales is Rs 1,00,000.

• Cash sales are payments made in cash/transactions made in cash, mostly on the same day.
• Credit sales are usually payments made at a later date than the exact transaction time.

The total sales of a firm, is usually calculated by adding these two elements, and are usually used to calculate the accounting ratios of the firm.