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THEORY (202604) IST SEMESTER (ACCOUNTING THEORY (202604)) November, 2014 April May June July Aug Sept 000 000 000 000 000 000 Oct '000 Nov 000
THEORY (202604) IST SEMESTER (ACCOUNTING THEORY (202604)) November, 2014 April May June July Aug Sept 000 000 000 000 000 "000 Oct '000 Nov "000 Sales 3600 3800 4500 4800 4700 4500 4900 4500 Purchases 2400 2500 3000 3200 3200 3200 Admin/selling 300 200 150 300 200 250 Wages/salaries 500 550 600 720 450 480 Interest 300 Income Taxation 300 350 3400 / 3100 260 270 500 520 100 h The following additional information is available: (i) The company will purchase a new delivery van at a cost of OMR 700,000. The vehicle will be paid for in September 2014 though dellvery will take place in November 2014 The company policy on sales is that 30% of sales is for cash while the remaining are credit sales to be collected as follows: 50% of the credit sales will be collected in the month of sales. The balance of the credit sales will be collected in the month following sale () The company enjoyed the suppliers' policy of 20% of purchases for cash, while the balance is paid in the following month The calling and administration avances are said for in the 3. Kindly note that you are expected to prepare a Cash budget for the 4 months ending 31 October, 2014 The question continues on the next layout box 6. (Non-anonymous question o (15 Points) 6 Question (Non-anonymous question o) month they are incurred. (v) Wages and salaries are also paid in the month they are incurred. (vi) Interest income is received in the month in which it is due. (vii) Taxation is paid a month after it is due. (viii) Closing cash balance in June, 2014 is expected to be OMR 150,000. [You are required to a. Prepare a monthly Cash Budget for the first 4 months ending 31 October, 2014
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