Question: Read the question carefully and try to answer them. From the following information, prepare the Cash Budget for the 3 months-September, October and November

Read the question carefully and try to answer them. From the following 

Read the question carefully and try to answer them. From the following information, prepare the Cash Budget for the 3 months-September, October and November of 2023: Month August July September October November Sales RM. 50,000 65,000 70,000 60,000 84,000 Purchase RM. 28,000 32,500 37,200 29,500 39,700 Wages Factory RM. Expens es RM. 3,400 3,700 3,900 4,200 4,500 3,200 3,300 3,450 ii) The period of credit allowed to Debtors is 2 months. iii) A month's credit is obtained from the Creditors 3,600 3,700 Office Expens es RM. 4,000 4,200 4,350 4,420 4,800 i) A Sales Commission at 5% on sales, which is due in the month following the month in which the sales dues are collected, is payable in addition to the Office Expenses iv) Wages are paid on the 1st and 16th of each month in respect of dues for a period of 15 days, preceding those days v) Other Expenses are paid in the month in which they are due vi) For purchase of an asset under instalment-payment system, an instalment of RM1,250 per month is paid. vii) Bank Balance on 1st September is RM15,200 Required: a) To prepare the Cash Budget for the 3 months-September, October and November of 2023 (37 marks) b) State the advantages of cash budget. (10 marks)

Step by Step Solution

3.51 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To prepare the Cash Budget for the months of September October and November 2023 analyze the given information and calculate the cash inflows and outflows for each month Based on the provided data and ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!