Trade Receivable Closing Balance Formula

Trade Receivable Closing Balance Formula

Trade receivable can be calculated by the following formula.

Closing balance = Opening Balance + Credit Sales –Cash received

Example

Opening = 10,000

Credit Sales = 30,000

Cash Received = 15,000

What would be Closing Balance?

Solution

Closing balance = Opening Balance + Credit Sales –Cash received

=10,000+30,000-15,000

=25,000 (Closing Balance)