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Question 1 ( 2 0 Mr BUDGETS 2 The following information has been projected by the management of GORGEOUS TRADING for the forecast period 0
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Mr
BUDGETS
The following information has been projected by the management of GORGEOUS TRADING for the forecast period September to October
Information:
tablePROJECTIONSACTUAL,BUDGETEDJULYAUGUST,SEPTEMBER,OCTOBERCash Sales,Credit Sales,Purchases
Collections of credit sales from debtors:
in the month of sales
one month after the sales
two months after the sales
Balance due is irrecoverable and must be written off as bad debts.
All purchases are on credit and creditors are paid one month after purchase less discount.
A fixed deposit of R is maturing on September An interest of will also be due on this date.
Salaries amounts to R per month. However, an increase of will come into effect from October
An airconditioned system costing R is scheduled to be purchased and installed for cash in October
Variable expenses are expected to be R per month and expected to increase by R with effect from October
The owner withdraws R cash each month for her personal use.
A loan repayment of R is made annually on September.
The expected Bank balance on September is an unfavorable bank balance of R
Required:
Debtors Collection Schedule for the budgeted period, September to October
marks
Statement of Cash Budget for the Budgeted period, September to October
marks
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