Question $4(20$ Marks$)$

In preparing your Budget and Cash Flow for the year ending $30$ June $2026$ the following information was received from your accountant.

Monthly Expenses:

Depreciation $2025$: monthly

Computer Equipment R$1500$

The entity chose to move to smaller premises. A contract was signed for new office premises from $1$ August $2025.$ The deposit payable is R$20000,$ and the monthly rental is R$20000.$ You are expecting to receive a refund of R$15000$ for the deposit on $15$ September $2025$ for the previous premises you rented.

Salaries will increase by $7\backslash \%$ in August $2025$ and a bonus of $100\backslash \%$ is paid in December $2025.$ You invoiced R$135000$ on a monthly basis in the previous financial year. You are planning on increasing the monthly invoicing with $\backslash (5\backslash \%\backslash )$ from August $2025.$ Debtors pay on average $\backslash (75\backslash \%\backslash )$ of the invoices during the month of invoicing and $\backslash (25\backslash \%\backslash )$ in the next month.

Your bank balance on $30$ June $2025$ is R$55300.$

You are required to draw up an Income Statement $($Profit and loss$)$ budget and a Cash Flow forecast for the period ending $30$ June $2026$ in column format. List each income and expense item separately in both the income statement and the cashflow.

$*$ Insert column for each month of the year.