The following information pertains to B Traders for the three months ended 30 June 2022: Actual...
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The following information pertains to B Traders for the three months ended 30 June 2022: Actual Budgeted April R Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation . 500 000 360 000 70 000 28 000 . 2.000 May R 540 000 410 000 90 000 32 000 2.000 June R 580 000 450 000 100 000 36 000 2.000 • The remaining 5% is usually written off as bad debts. • Trade creditors are paid in the month after the purchases at a discount of 5% 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. • Expenses are paid as they arise The favourable bank balance on 1 May was R30 000. Required: Prepare the Cash Budget of B Traders for June and July 2022. It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale (25) The following information pertains to B Traders for the three months ended 30 June 2022: Actual Budgeted April R Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation . 500 000 360 000 70 000 28 000 . 2.000 May R 540 000 410 000 90 000 32 000 2.000 June R 580 000 450 000 100 000 36 000 2.000 • The remaining 5% is usually written off as bad debts. • Trade creditors are paid in the month after the purchases at a discount of 5% 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. • Expenses are paid as they arise The favourable bank balance on 1 May was R30 000. Required: Prepare the Cash Budget of B Traders for June and July 2022. It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale (25)
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Answer rating: 100% (QA)
Cash Budget B Traders Cash Budget Description June R July R Cash Receipts Cash Sales 20 108000 11600... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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