1., PROJECTIONS JULY ACTUAL AUGUST SEPTEMBER BUDGETED OCTOBER Cash Sales 150 000 100 000 120 000 140 000 Credit Sales 100 000 80 000 60 000 90 000 Purchases 70 000 60 000 100 000 70 000 2. Collections of credit sales from debtors: 50% in the month of sales 30% one month after the sales 15% two months after the sales Balance due is irrecoverable and must be written off as bad debts. 3. All purchases are on credit and creditors are paid one month after purchase less 10% discount. 4. A fixed deposit of R15 000 is maturing on 20 September 2024. An interest of R2 000 will also be due on this date. 5. Salaries amounts to R30 000 per month. However, an increase of 8% will come into effect from 01 October 2024. 6. An air-conditioned system costing R25 000 is scheduled to be purchased and installed for cash in October 2024. 7. Variable expenses are expected to be R18 000 per month and expected to increase by R2 000 with effect from 01 October 2024. 8. The owner withdraws R20 000 cash each month for her personal use. 9. A loan repayment of R50 000 is made annually on 01 September. 10. The expected Bank balance on 01 September is an unfavorable bank balance of R7 850. Required: Debtors Collection Schedule for the budgeted period, September to October 2024. (6 marks) Statement of Cash Budget for the Budgeted period, September to October 2024
1., PROJECTIONS JULY ACTUAL AUGUST SEPTEMBER BUDGETED OCTOBER Cash Sales 150 000 100 000 120 000 140 000 Credit Sales 100 000 80 000 60 000 90 000 Purchases 70 000 60 000 100 000 70 000 2. Collections of credit sales from debtors: 50% in the month of sales 30% one month after the sales 15% two months after the sales Balance due is irrecoverable and must be written off as bad debts. 3. All purchases are on credit and creditors are paid one month after purchase less 10% discount. 4. A fixed deposit of R15 000 is maturing on 20 September 2024. An interest of R2 000 will also be due on this date. 5. Salaries amounts to R30 000 per month. However, an increase of 8% will come into effect from 01 October 2024. 6. An air-conditioned system costing R25 000 is scheduled to be purchased and installed for cash in October 2024. 7. Variable expenses are expected to be R18 000 per month and expected to increase by R2 000 with effect from 01 October 2024. 8. The owner withdraws R20 000 cash each month for her personal use. 9. A loan repayment of R50 000 is made annually on 01 September. 10. The expected Bank balance on 01 September is an unfavorable bank balance of R7 850. Required: Debtors Collection Schedule for the budgeted period, September to October 2024. (6 marks) Statement of Cash Budget for the Budgeted period, September to October 2024
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1., PROJECTIONS
JULY
ACTUAL
AUGUST
SEPTEMBER
BUDGETED
OCTOBER
Cash Sales
150 000
100 000
120 000
140 000
Credit Sales
100 000
80 000
60 000
90 000
Purchases
70 000
60 000
100 000
70 000
2. Collections of credit sales from debtors:
50% in the month of sales
30% one month after the sales
15% two months after the sales
Balance due is irrecoverable and must be written off as bad debts.
3. All purchases are on credit and creditors are paid one month after purchase less
10% discount.
4. A fixed deposit of R15 000 is maturing on 20 September 2024. An interest of R2 000
will also be due on this date.
5. Salaries amounts to R30 000 per month. However, an increase of 8% will come into
effect from 01 October 2024.
6. An air-conditioned system costing R25 000 is scheduled to be purchased and
installed for cash in October 2024.
7. Variable expenses are expected to be R18 000 per month and expected to increase
by R2 000 with effect from 01 October 2024.
8. The owner withdraws R20 000 cash each month for her personal use.
9. A loan repayment of R50 000 is made annually on 01 September.
10. The expected Bank balance on 01 September is an unfavorable bank
balance of R7 850.
Required:
Debtors Collection Schedule for the budgeted period, September to October 2024. (6
marks)
Statement of Cash Budget for the Budgeted period, September to October 2024
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