$1\mathrm{.}2$ INFORMATION

The information provided below was taken from the books of Modern Traders for the financial year ended $31$ May $2024.$

Extract of statement of comprehensive income for the year ended $31$ May $2024$

Additional information

All inventories are priced at cost plus $25\%.$

Sales are divided equally each month. Sales are expected to increase by $18\%$ for the financial year ending $31$ May

Fifty percent $(50\%)$ of the sales are for cash and the balance is on credit. Debtors normally pay their accounts as

follows:

$40\%$ in the month of the sale, and these debtors are entitled to a $5\%$ discount;

$55\%$ one month after the sale

The balance is usually written off as bad debts.

Purchases for June and July are expected to be R$20000$ per month. All purchases are for cash.

In terms of the lease agreement rent is received monthly. The rent for the year ending $31$ May $2025$ is expected to be

$10\%$ more than the previous twelve months.

Advertising is paid for monthly and is estimated to be $8\%$ of each month's sales.

Salaries and wages will increase by $10\%$ with effect from $01$ July $2024.$

Rates and taxes are paid in one instalment for the year during July $2024.$ Rates are calculated at $80$ cents $(R0\mathrm{.}80)$ per

R $100$ on the value of the premises. The premises are valued at R$300000.$

Other operating expenses are expected to increase by $5\%$ and are spread evenly throughout the year.

Operating expenses are paid for in the month in which they are incurred.

On $31$ May $2024$ an unfavourable bank balance of R$18000$ appeared in the ledger of Modern Traders.

REQUIRED

Prepare each of the following for June and July $2024$ from the information provided below. $($Provide separate monetary

columns for each month.$)$

$1\mathrm{.}2\mathrm{.}1$ Debtors collection schedule

$1\mathrm{.}2\mathrm{.}2$ Cash budget