2. From the following forecasts of income and expenditure prepare a cash budget for the three-month...
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2. From the following forecasts of income and expenditure prepare a cash budget for the three-month ending 30th Nov 2016. The bank balance as on 1st September was Rs 10,000. Purchases Wages Factory Office expenses expenses 5,600 3,900 10,000 5,800 4,100 12,000 5,800 4,200 14,000 5,900 5,100 16,000 5,900 5,100 16,000 a) A sales commission at 4% on sales and due in the month following in which the sales dues are collected, is payable in addition to other expenses Month July August September October November Sales 80,000 40,000 76,500 42,000 78,000 38,500 95,000 37,500 95,000 43,000 b) Fixed expenses worth Rs 65,000 will be purchased in September, to be paid for in the following month c) Rs 20,000 in respect of debenture interest will be paid in October d) The period of credit allowed to customers is 2 months and one month's credit is obtained from suppliers of goods. Wages are paid on an average on the first of each month in respect of dues for the periods ending on the date preceding. f) Expenses are paid in the month in which they are due. 2. From the following forecasts of income and expenditure prepare a cash budget for the three-month ending 30th Nov 2016. The bank balance as on 1st September was Rs 10,000. Purchases Wages Factory Office expenses expenses 5,600 3,900 10,000 5,800 4,100 12,000 5,800 4,200 14,000 5,900 5,100 16,000 5,900 5,100 16,000 a) A sales commission at 4% on sales and due in the month following in which the sales dues are collected, is payable in addition to other expenses Month July August September October November Sales 80,000 40,000 76,500 42,000 78,000 38,500 95,000 37,500 95,000 43,000 b) Fixed expenses worth Rs 65,000 will be purchased in September, to be paid for in the following month c) Rs 20,000 in respect of debenture interest will be paid in October d) The period of credit allowed to customers is 2 months and one month's credit is obtained from suppliers of goods. Wages are paid on an average on the first of each month in respect of dues for the periods ending on the date preceding. f) Expenses are paid in the month in which they are due.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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