Bersatu Kekal Bhd is an engineering company that started a new business with an opening cash balance of RM85,000. This new business will focus on sales component parts to all potential customers located in Pasir Gudang, Johor. The following are the budgeted data of Bersatu Kekal Bhd for the year 2019.

1 . In January 2019, to start a business the company has rented a double storey building for its operation at RM5,000 per month with RM20,000 rental deposit. Rental deposit is paid in January and monthly rental will be paid in the month it is incurred.

2.In February, the company is planning to purchase a machine at a cost of RM55,000 which has an estimated useful life of 10 years. Depreciation charge per annum will be RM5,500. Only half of the machine cost will be paid in the month of purchase, while the balance will be paid equally over the next two months.

3.Four (4) administration staff will be employed and each staff will be paid RMI ,200 per month. Payment will be in the month in which they are incurred.

4.Purchases of materials will be made on credit. 50% of the credit purchases will be paid in the month of purchase and another 50% one month after the purchases. Estimated purchases are as follows.

January

RM23,OOO

February

RM28,OOO

March

RM25,OOO

April

RM22,OOO

5.A motor van costing RM49,800 will be purchased in January. Payment of the motor van will be in six equal payments starting February 2019.

6.Estimated sales for component parts in units are:

January

5,000

February

4,500

March

5,300

April

4,800

7.The selling price for the component parts is RM20. 60% of the sales are expected to be in cash whilst the other 40% is on credit. The credit sales will be collected one (1) month after sales.

8.Allowance for manager is RMI ,000 per month and paid in the month incurred.

9.Monthly utilities RM850 is to be paid one month in arrears.

10.The company received 5% dividend from unit trust investment of RM500,000 in

February.

Required:

a)schedule of collection and payments for the month of January, February and March 2019.

(10 marks)

b) cash budget for the month of January, February and March 2019.

(25 Marks)

(Total: 35 Marks)