Illustration: 13 A company is expecting to have Rs. 25,000 cash in hand on 1st April 2003 and it requires you to prepare an estimate of cash position in respect of three months from April to June 2003, from the information given below : Sales Purchase Wages Expenses February 70000 40000 8000 6000 March 80000 50000 8000 7000 April May 92000 52000 9000 7000 100000 60000 10000 8000 June 120000 55000 12000 9000 Additional Information: (a) Period of credit allowed by suppliers - two months. (b) 25 % of sale is for cash and the period of credit allowed to customer for credit sale one month. (c) Delay in payment of wages and expenses one month. (d) Income Tax Rs. 25,000 is to be paid in June 2003.

Illustration: 13 A company is expecting to have Rs. 25,000 cash in hand on 1st April 2003 and it requires you to prepare an estimate of cash position in respect of three months from April to June 2003, from the information given below : Sales Purchase Wages Expenses February 70000 40000 8000 6000 March 80000 50000 8000 7000 April May 92000 52000 9000 7000 100000 60000 10000 8000 June 120000 55000 12000 9000 Additional Information: (a) Period of credit allowed by suppliers - two months. (b) 25 % of sale is for cash and the period of credit allowed to customer for credit sale one month. (c) Delay in payment of wages and expenses one month. (d) Income Tax Rs. 25,000 is to be paid in June 2003.

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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