Question
Question # 1 VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available: Creditorsgive one month
Question # 1
VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available:
Creditorsgive one month credit
Salaries are paid in the current month
Fixed costs are paid in one month arrears and include a charge for depreciation Rs.10,000 per month
Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents bad debts.
Month
Cash Sales
Credit Sales
Purchases
Salaries
Fixed Overheads
July
148,000
110,000
18,000
60,000
August
164,000
122,400
18,000
60,000
September
40,000
160,000
120,000
19,000
60,000
October
44,000
180,000
138,000
19,000
64,000
November
50,000
200,000
150,000
20,000
64,000
Required:
Prepare cash budget for September, October and November.
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
19th Edition
0077303202, 9780077303204
