Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 1 from the following information prepare

Question 1 From the following information prepare a monthly cash budget for the three...

90.2K

Verified Solution

Question

Accounting

Question 1
From the following information prepare a monthly cash budget for the three months ending
31st Dec. 2023
Credit terms
Sales -3 months to debtors. 20% of sales are on cash. On an average, 50% of credit
sales are paid on the due dates while the other 50% are paid in the month following
Creditors for material -2 months.
Lag in payment
Wages. 14 month, overheads -12 month.
Other information
Plant and Machinery to be installed in Aug. at a cost of RM150,000. It will be paid for
by monthly installments of RM6,000 each from 1st Oct.;
Preference share dividend (a)5% on RM280,000 are to be paid on 1st Dec.
Calls on 4,000 equity shares (a) RM4 per share expected on 1st November;
Dividends from investments amounting to RM7,500 are expected on 31st Dec.;
Income tax (advance) to be paid in December RM 5,000
Cash and Bank Balance on 1st Oct. expected RM18,000.
Required:
Prepare cash budget for 3 months period ending 31st December 2023 in detail with
appropriate workings.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Economics
1.2K views

Moran vs. Faberge (1975) At a slumber party held at the home of Louis Grigsby, Randi Williams...

Medical Sciences
1.2K views

The pregangliotic fibers of the parasympathetic nervous system emerge from a. thoracolumbar spinal region b. sympathetic chain c. higher...

Accounting
1.2K views

Choose a product that would lend itself well to activity-based costing and explain why. What are...

Biology
1.2K views

You are given the following task: Use gummy bears to prove you understand the basics...

Physics
1.2K views

A sphere of diameter r is cut from a solid sphere of radius r such...

Statistics
1.2K views

A 0 7193 3 0 8944 C 0 5843 D 0 6978

Calculus
1.2K views

Match each differential equation to a function which is a solution FUNCTIONS A y 3x...

Algebra
1.2K views

When there are no restrictions the domain of a function consists of all real numbers...

Accounting
1.2K views

I ALREADY HAVE ANSWERS TO ALL THE OTHER QUESTIONS, THAT'S WHY I ONLY PROVIDED THE...

Accounting
1.2K views

Oriole Retail Inc. sold merchandise for $1100 subject to credit terms of 37,n30,...

Accounting
1.2K views

Chip has an accrual-method, calendar-year sole proprietorship. On January 1,2019, he created an accrual-method, calendar-year...

Finance
1.2K views

Assume the data below describes the real cash flow of a 9-year project and all...