QUESTION 4 REQUIRED Use the information provided below to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following information was provided by BN Traders: 1. The bank balance on 28 February 2024 is expected to be R100 000 (unfavourable). The sales figures for the first four months of 2024 are expected to be as follows: March R1 000 000 2 3. 4. 4.1 4.2 5. 6. 7. 8. 9. 10. January R1 500 000 February R1 100 000 Cash purchases Credit purchases (20 MARKS) R360 000 R400 000 (4 marks) (16 marks) Cash sales usually make up 30% of the total sales. The balance of the sales is on credit. (Separate entries are required for cash sales and collections from credit sales.) Credit sales are normally collected as follows: 30% in the month of the sale, and these debtors are entitled to a 3% discount 65% in the month after the sale The rest is usually written off as bad debts. Purchases from February to April 2024 are expected to be as follows: February March R320 000 R350 000 April R1 200 000 April R480 000 R440 000 Sixty percent (60%) of the cash purchases is subject to a 10% cash discount. Creditors are paid in the month after the month of purchase. (Separate entries for cash purchases and payments to creditors are required.) The monthly salaries amount to R200 000. This includes the salary of the manager, R50 000. On 01 April 2024 the salary of the manager is expected to increase by 8% and the rest of the employees by 10%. The loan balance is expected to be R360 000 on 01 March 2024. Repayments of R15 000 per month are made at the end of each month as per the loan agreement. Interest at 12% per annum on the loan balance is also payable at the end of each month. Part of the building is sublet to a tenant. The lease agreement for the year ended 31 March 2024 reflected the rental at R144 000 per year, payable monthly. The rental will increase by 10% with effect from 01 April 2024. Other cash operating expenses are expected to total R150 000 for February 2024. These expenses are expected to increase by 5% each month thereafter.

QUESTION 4 (20 MAPKS). REQUIRED Use tre information provided below to prepere the following for March and Ape 224 4.1 Debtors Collection Schedvie (4 marks) 4.2 Cash Budget ( 16 marks) INFORMATION The folowing information wes provided by BN Traders: 1. The bank balance on 2B february 2024 is expectod to be R 100000 (untacurable) 2. The sales ficures for the first four months of 2024 are expected to be as blow: 3. Cash sales usualy make up 30% of the btal ssies. The ba ance of the sules is on credt. (Separate entries are required for cash sales and collections trom credt saes) 4. Credit sales are nomey yolected as folows: 4.1 30% in the month of the sale, and these debtors are entted ba 3% ciscourt 4265% in the month ater the sale The rest is usialy whtten of as bad dets. 5. Puchases from Fetruary to Aod 2024 ace expected to be as tolow: 6. Sady peroent (60%) of the cash purchases is subject b a 105 cash discourt Crediers are peid in the month afier the month of purchase. (Sepsrate enties for cash purchases and pajments to creditors are required.) 7. The montly salaies ancunt to R200 000. This indudes the sulay af the mansger, RS0 000. On 01 Apnl 2024 the salory of the manager is expectid b harease by 8% and the rest of the enployees by 10% 8. The ioan balance is epected bo be R360 000 on 01 March 2024 . Repyyments of R15 000 per month are made at the end of each month as per the lan agreement. Interest af 12% per annum on the loan balance is also poyatie at the end of each month. 9. Pat of the buling is sudiet to a fenant. The lease aprement for the year ended 31 March 2024 refecled the rental at R144000 per year, payable montty. The renta wil ncrease by 10% with effect from 01 Apri 2024. 10. Oher cash operating expenses are expected to total R150 000 for Febniary 2024. These expenses are expected to increase by 5% each month thereafter. QUESTION 4 (20 MARKS) REQUIRED Use the information provided below to prepare the folowing for March and Apri 2024: 4.1 Debtors Collection Schedule ( 4 marks) 4.2 Cash Budget (16 marks) INFORMATION The following information was provided by BN Traders: 1. The bank balance on 28 Febniary 2024 is expectec to be R100 000 (unfavourable). 2. The sales figures for the first four months of 2024 are expected to be as follows: 3. Cash sa es usually make up 30% of the total sales. The baiance of the saies is cn credit. (Separate entries are required for cash sales and colections from credit sales) 4. Credit sales are normaly collected as follows: 4.1 30% in the month of the sale, and these debtors are entiled tb a 3% ciscount 4.65% in the month after the sale The rest is usually witten of as bad detts. 5. Purchases from February to Apri 2024 are expected to be as follows: 6. Sidy percent (60%) of the cash purchases is subject to a 10% cash discount. Creditors are paid in the month after the month of purchase. (Separale entries for cash purchases and payments to creditors are required.) 7. The monthly salaries amount to R200 000. This indudes the salary of the manager, R50 000. On 01 Aprl 2024 the salary of the manager is expected to increase by 8% and the rest of the employees by 10% 8. The loan balance is expected to be R360 000 on 01 March 2024. Repayments of R15000 per month are made at the end of each month as per the loan agreement. Interest at 12% per annum on the loan balance is aiso payable at the end of each month. 9. Part of the builing is subiet to a tenant. The lease agreement for the year ended 31 March 2024 relected the rental at R144 000 per year, poyable morthy. The rental will ircrease by 10% with effed from 01 Apn 2024 QUESTION 4 (20 MARKS) REQUIRED Use the intormation provided below to prepare the following for March and April 2024: 4.1 Debtors Colection Schedule ( 4 marks) 42 Cash Budgat (16 marks) INFORMATION The following information was provided by BN Traders: 1. The bank balance on 28 February 2024 is expected to be R100 000 (unfavourable) 2. The sales figures for the first four months of 2024 are expected to be as follows: 3. Cash sales usualy make up 30% of the total sales. The balance of the sales is on credit. (Separate entries are required for cash sales and collections from credit sales.) 4. Creda sales are nomaly collected as follows: 4.1 30% in the month of the sale, and these debtors are entived to a 3% discount 42.65% in the month after the sale The rest is usualy witten oft as bad debts 5. : Purchases from February to Apri 2024 are expected to be as follows: 6. Saty percent (60%) of the cash purchases is subject to a 10% cash discount. Crecitors are paid in the month after the month of purchase. (Separate entries for cash purchases and payments to creditors are required.) 7. The monthy salaries amount to R200 000. This induces the salary of the manager, R50 000. On 01 Apri 2024 the salary of the manager is expected to increase by 8% and the rest of the employees by 10% 8. The loan balance is expected to be R360 000 on 01 March 2024. Repayments of R15000 per month are made at the end of each month as per the loan agreement. Interest at 12% per annum on the loan balance is also payable at the end of each month. 9. Par of the bulding is sublet to a tenant. The lease agreement for the year ended 31 March 2024 refected the rental at R144000 per year, payable monthly. The rental will increase by 10% with effect from 01 April 2024. 10. Other cash operating expenses are expecied to total R150 000 for February 2024. These expenses are expected to increase by 5% each month thereafter