Question
The opening cash balance on 1st October was expected to be 30000 naira.the sales budget where as follows August. #80,000 September. #98,000 October. #75,000 November.
The opening cash balance on 1st October was expected to be 30000 naira.the sales budget where as follows
August. #80,000
September. #98,000
October. #75,000
November. #75,000
December. #80,000
Examination of records shows, debtors settled according to the following manner
60% within the month of sales
25% the month following
15% the month after
Purchases budget were as follows
September #60,000
October #55,000
November. #45,000
December #55,000
All purchases are on credit and past records shows that 90% has settled in the month of purchase and balance settled the month after.
Prepare the cash budget of October, November and December
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
