A company expects to have Rs 50,000 cash in hand on 19 October and requires you...
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A company expects to have Rs 50,000 cash in hand on 19 October and requires you to prepare an estimate of cash position during the three months, October, November and December. The following information is supplied to you: Months Sales Purchases Wages Factory Office expenses expenses 10,000 8.000 8,000 8,000 8,000 8,000 August 1,00,000 60,000 12,000 September 1,12,000 64,000 13,000 11,000 October 1,20,000 70,000 14,000 12,000 18,000 15,000 November 1,60,000 80,000 December 1,80,000 80,000 19,000 16,000 Selling expenses 6,000 6,000 7,000 9,000 9,000 Other Information: a) Suppliers supply goods at two months credit. b) 20% of sales are in cash and remaining amount is collected in the month following that of sales. c) Wages and all other expenses are paid in the month following the one in which they are incurred. d) Income tax of Rs 50,000 is due to be paid on December. e) The company is to pay dividends to shareholders and bonus to workers of Rs 20,000 and Rs 30,000 respectively in the month of October. f) Plant has been ordered to be received and paid in November. It will cost Rs 1,60,000.0000 6, 0100. Inl A company expects to have Rs 50,000 cash in hand on 19 October and requires you to prepare an estimate of cash position during the three months, October, November and December. The following information is supplied to you: Months Sales Purchases Wages Factory Office expenses expenses 10,000 8.000 8,000 8,000 8,000 8,000 August 1,00,000 60,000 12,000 September 1,12,000 64,000 13,000 11,000 October 1,20,000 70,000 14,000 12,000 18,000 15,000 November 1,60,000 80,000 December 1,80,000 80,000 19,000 16,000 Selling expenses 6,000 6,000 7,000 9,000 9,000 Other Information: a) Suppliers supply goods at two months credit. b) 20% of sales are in cash and remaining amount is collected in the month following that of sales. c) Wages and all other expenses are paid in the month following the one in which they are incurred. d) Income tax of Rs 50,000 is due to be paid on December. e) The company is to pay dividends to shareholders and bonus to workers of Rs 20,000 and Rs 30,000 respectively in the month of October. f) Plant has been ordered to be received and paid in November. It will cost Rs 1,60,000.0000 6, 0100. Inl
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To estimate the cash position for the three months of October November and December we need to consi... View the full answer
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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