The following information relates to Household Enterprises.

The bank balance on $30$ October $2020$ was R$24000($favourable$).$

Actual and budgeted sales are as follows:

$3$Credit sales are normally collected as follows:

$50\%$ one month after sale.

$45\%$ two months after the sale.

The rest is usually written off as bad debts.

The cash sales for December are expected to be $20\%$ greater than the cash

sales for November.

REGENT BUSINESS SCHOOL $($RBS$)-$ JULY $2023$

BACHELOR OF COMMERCE IN ACCOUNTING YEAR $2-$ ACADEMIC AND ASSESSMENT

CALENDAR $($RICH DISTANCE$)$

Purchases are expected to be as follows:

Creditors are paid one month after the month of purchase.

The monthly salaries amount to $R50000.$ Salaries are expected to increase by

$9\%,$ with effect from $1$ December $2020$

Interest at $18\%$ per annum on the loan balance of $R100000$ is paid monthly. A

repayment of R$20000$ will be made on $31$ December $2020.$

Part of the building is sublet to a tenant. The lease agreement for the year ended

$30$ November $2020$ reflected the rental amount of R$2000$ per month. The rental will

increase by $10\%$ on $1$ December $2020.$

Other cash operating expenses amounted to R$10000$ for October $2020.$ These

expenses are expected to increase by R$300$ each month.

Required:

$1\mathrm{.}1$ Prepare the debtors collection schedule for November and December $2020.(4)$

$1\mathrm{.}2$ Prepare the cash budget for November and December $2020.$