VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available:Creditors give one month creditSalaries are paid in the current monthFixed costs are paid in one month arrears and include a charge for depreciation Rs.10,000 per monthCredit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents bad debts. MonthCash SalesCredit SalesPurchasesSalariesFixed OverheadsJuly 148,000110,00018,00060,000August 164,000122,40018,00060,000September40,000160,000120,00019,00060,000October44,000180,000138,00019,00064,000November50,000200,000150,00020,000 64,000 Calculate Current month credit sales for each month.Calculate 1st month credit sales for each monthCalculate 2nd month credit sales for each month.Calculate Total receipt for each month Calculate Total Payment for each month Calculate Closing Cash Balance for each month

Comment: The Question is Multipart, so SME will answer only three subparts as per Bartleby…

Answered: Calculate Current month credit sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available:

Creditors give one month credit
Salaries are paid in the current month
Fixed costs are paid in one month arrears and include a charge for depreciation Rs.10,000 per month
Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents bad debts.

Month	Cash Sales	Credit Sales	Purchases	Salaries	Fixed Overheads
July		148,000	110,000	18,000	60,000
August		164,000	122,400	18,000	60,000
September	40,000	160,000	120,000	19,000	60,000
October	44,000	180,000	138,000	19,000	64,000
November	50,000	200,000	150,000	20,000	64,000

Calculate Current month credit sales for each month.

Calculate 1st month credit sales for each month

Calculate 2nd month credit sales for each month.

Calculate Total receipt for each month

Calculate Total Payment for each month

Calculate Closing Cash Balance for each month

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