80.2K

Verified Solution

Link Copied!

Required:

Prepare the Cash Budget of X Traders for June and July 2022.

(25)

The following information pertains to X Traders for the three months ended 30 June 2022:

It is expected that debtors will settle their accounts as follows: 20% in the month of

sale

month of sale

70% in the month after the month of sale, and 5% in the second month after the

• 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 favorable bank balance on 1 May was R30 000.

your answer should be in the following fomart:

\begin{tabular}{|l|r|r|r|} \hline & Actual & \multicolumn{2}{|l|}{ Budgeted } \\ \hline & April & \multicolumn{1}{l|}{ May } & \multicolumn{1}{l|}{ June } \\ \hline & R & R & R \\ \hline & & & \\ \hline Sales (20\% for cash and 80\% on credit) & 500000 & 540000 & 580000 \\ \hline Purchases (10\% for cash 90\% on credit) & 360000 & 410000 & 450000 \\ \hline Salaries and wages paid & 70000 & 90000 & 100000 \\ \hline Cash expenses & 28000 & 32000 & 36000 \\ \hline Depreciation & 2000 & 2000 & 2000 \\ \hline \end{tabular} Cash Budget of X Traders for June and July 2022. \begin{tabular}{|c|c|c|} \hline & \begin{tabular}{l} June \\ R \end{tabular} & \begin{tabular}{l} July \\ R \end{tabular} \\ \hline Bank balance at the beginning of the month & 30000 & \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Bank balance at the beginning of the month \\ Cash receipts: \end{tabular}} \\ \hline Cash sales & 108000 & 116000 \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Cash sales \\ Receipts from debtors (1) \end{tabular}} \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Receipts from debtors (1) \\ Cash available during the month \end{tabular}} \\ \hline Cash purchases (2) & 41000 & 45000 \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Cash purchases (2) \\ Payments to creditors (3) \end{tabular}} \\ \hline \begin{tabular}{l} Paymens to cremutiol \\ Salaries \end{tabular} & 45000 & 50000 \\ \hline \begin{tabular}{l} Salanes \\ Wages \end{tabular} & & 50000 \\ \hline \begin{tabular}{l} Wages \\ Cash expenses \end{tabular} & 32000 & 36000 \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Cash expenses \\ Bank balance at end of the month \end{tabular}} \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{ Bank balance at end of the month }} \\ \hline & & \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{l} Calculations: \\ (1) Receipts from debtors \end{tabular}}} \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{l} (1) Receipts from debtors \\ (2) Cash Purchases (10\%) \end{tabular}}} \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{l} (2) Cash Purchases (10%) \\ Credit Purchases \end{tabular}}} \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{\begin{tabular}{l} Credit Purchases \\ (3) Payments to creditors (5-Discount) \\ Wages \end{tabular}}} \\ \hline \begin{tabular}{l} (3) Payments to creditors (3- - Disculy \\ Wages \end{tabular} & & \\ \hline \begin{tabular}{l} Wages \\ Wages pasd \end{tabular} & & \\ \hline \begin{tabular}{l} Wages paid \\ (4) Wages paid \end{tabular} & & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer