Page 232 - Microsoft Word - 00 ACCA F2 Prelims.docx

Chapter 13

6.3 Cash receipts and payments

To calculate the cash receipts from the credit sales there are two things to consider:

 the value of the receipts – how much cash will be received from the credit sales

 the timing of the receipts – when will the cash be received from the credit sales.

To calculate the cash payments for the credit purchases there are two things to
consider:

 the value of the payment – how much cash will be paid to the payable

 the timing of the payment – when will the cash be paid to the payable.

It may be necessary to calculate the amount due to be paid based on quantities
purchased.

Illustrations and further practice

Now try Illustrations 7 and 8 from Chapter 13

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