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

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Question

Accounting

Question 1
From the following information prepare a monthly cash budget for the three months ending
31 st 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 @ 5% on RM280,000 are to be paid on 1st Dec.
Calls on 4,000 equity shares @ 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.help
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