Additional Information (a) Credit lerms are - Sales terms: 10% sales are on cash basis, 50% of credit sales are collected next month and the balance in the following month. - Creditors terms: - Materials 2 months - Wages 1/5 month - Overheads 1/2 month Cash balance on October 1 is expected to be 8,000. (c) A machinery will be anstatled in August, at a cost of 1,00,000. The monthly installinent of 25,000 is payable form October onwards (d) Dividend at 109 on preference share capital of 3,00,000 will be paid on 1st Dec. (e) Advance to be recelved trom sale of vehicle 20,000 in December (t) income-tax (advance) to be paid in December 5,000 (9) For simplicity, gnore any interest on cash balances