COURSE: ACCOUNTING B QUESTION 3 (ORANGE BOOK) 25 MARKS /33 minutes You obtain the following information from Wheeler Traders 1. Balances on 30 June 2016 Vehicles. Cost R450 000 Accumulated depreciation 150 000 Inventories 104 000 Receivables 33 000 Cash 18 000 Payables 72 160 2 Sales June (actual) R55 000 July (estimated) 66 000 August (estimated) 77 000 September (estimated) 55 000 40% of sales are cash sales and credit sales are collected in the month following the sales 3 Purchases May (actual) R52 800 June (actual) 61 600 July (estimated) 44 000 August (estimated) 35 200 September (estimated) 44000 All purchases are on credit. Payables are paid as follows: 80% in the month following the month of purchases and 20% in the following month. Salaries amount to R3 000 per month and is paid monthly 5. According to the contract, rent of R2 750 per month is payable on the first day of every month and will annual increase with 10% on anniversary date which is 1 September of each year. 6. A delivery van with a cost of R30 000 will be purchased on credit on 31 July 2016. A deposit of R8 000 is payable on 31 July and a capital instalment of R1 000 are payable on the last day of each month from 31 August together with interest of 18% per year. Depreciation on vehicles must be written off and 20% per year on the cost 7 The annual insurance premium of R 3 250 on the delivery van will be paid on 1 August 2016 REQUIRED Prepare the cash budget for the period 1 July to 30 September 2016 (balanced monthly).(25)