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North Point Ltds management has and estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June.

$

Cash Sales	53,000
Credit Sales	92,000
Wages (gross)	22,000
Rent	6,000
Credit purchases of trading stock	18,000
Cash purchases of trading stock	8,000
Loss on sales of asset	3,000

60% of sales credit sales are collected in the month of sale and 40% in the following month.

Credit sales for May was budgeted for $80,000

90% of credit purchases are paid in the month of purchase and 10% in the following month.

Credit purchases for May was budgeted for $22,000

Wages for May was budgeted for $15,000.

PAYG tax deductions are calculated at 20% of gross wages and paid to ATO in the following month of wages paid.

Assessment tasks

Prepare a cash budget for June. (Note: For simplicity ignore GST in your calculations).

Example Only:

XXXXXX Pty Ltd
Cash Budget
For the month of XXXX
Details	$
Receipts
Cash sales
Credit sales
July 10% x XXXX
August 90% x XXXXX
Subtotal
GST
Total Receipts
Payments
Cash purchase
Credit purchases
June 20% x XXXXX
July 80% x XXXX
Rent
GST
PAYG deductions
Wages
Total Payments
Increase in cash
Opening balance
Closing Balance

Note: the above suggested template is only an example, the months indicated under the Credit sales and Credit purchases need to be changed.

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