Fatima had trade receivables of £152,000 at 1 December 2019. During the year to 30 November 2020 she received cash of £795,000 and made refunds to her customers of £12,000. At 30 November 2020, her trade receivables were £146,000. What revenue figure should Fatima recognise in her statement of profit or loss for the year ended 30 November 2020?

Question

Quizplus · Accepted Answer

Revenue is calculated as cash received plus the increase in trade receivables. In this case, Fatima received £795,000 in cash and her trade receivables increased by £146,000 - £152,000 = £6,000. Therefore, her revenue for the year is £795,000 + £6,000 = £801,000.

Fatima Had Trade Receivables of £152,000 at 1 December 2019