Food2Go Ltd is a fast food retailer which operates in 10 locations in Dublin - Junior Cycle Business Studies - Question 17 - 2019

To balance the Analysed Cash Book:

1. Revenue from Sales: Calculate VAT on sales: $12,000 × 0.135 = 1,620$, thus total sales amount to $12,000 + 1,620 = 13,620$.
2. Purchases for Resale: Calculate VAT on purchases: $5,600 × 0.135 = 756$, hence total purchases amount to $5,600 + 756 = 6,356$.
3. Wages Paid: Sum of wages paid becomes $3,000 + 2,850 = 5,850$.
4. Electricity: Amount paid for electricity is $670$.
5. Sum the Total Inflows and Outflows: After completing the cash book the totals are:
   • Cash Inflow Total: $21,500 + 13,620 = 35,120$
   • Cash Outflow Total: $3,000 + 5,850 + 670 = 9,520$
6. Final Balance: $35,120 - 9,520 = 25,600$ which brings the balance of the cash book to $22,244$.