QUESTION THREE $[25]$

The information provided below relates to Endless Projects Limited:

The bank balance on $31$ July was R$32000($favourable$)$

Actual and budgeted revenue are as follows:

Cash revenue is expected to be $20\%$ of total revenue.

Debtors are expected to settle their accounts as follows:

$80\%$ during the month of revenue, subject to a $5\%$ discount

$20\%$ in the month following the revenue

Actual and budgeted purchases for the month are as follows:

$50\%$ of all purchasers are for cash

Creditors are paid in full in the month following the purchase transaction.

$4.$Rent is payable at the end of each month, it amounts to R$12000.$ Rent will increase by $12\%$ in

August.

Insurance amounts to R$54000$ per annum, payable monthly.

The proprietor intends to withdraw R$12000$ during August.

A new motor vehicle will be purchased in July. A deposit of R$18000$ is payable with an instalment

of R$6000$ from August.

Required:

Prepare the Cash Budget for August and September.

Note: Use separate columns for each month.