M/s. XYZ Private Limited has a cash balance of PKR 20,000 at the ending of the February and the following information is available: - a) Creditors are settled in the very next month of purchase. b) Salaries are paid in the current month. c) Fixed costs are paid in one-month arrears. d) Manufacturing expenses are paid in one-month advance. e) Charge for depreciation is PKR 1,000/month and is included in the Fixed OH. f) Credit Sales are settled as follows; a. 10% in the month of sales b. 40% in the next month c. 40% in the next following month, and the balance represents bad debts. g) A dividend of PKR 10,000 is payable in June. h) Capital expenditure for buying a plant was incurred on
M/s. XYZ Private Limited has a cash balance of PKR 20,000 at the ending of the February and the following
information is available: -
a) Creditors are settled in the very next month of purchase.
b) Salaries are paid in the current month.
c) Fixed costs are paid in one-month arrears.
d) Manufacturing expenses are paid in one-month advance.
e) Charge for
f) Credit Sales are settled as follows;
a. 10% in the month of sales
b. 40% in the next month
c. 40% in the next following month, and the balance represents
g) A dividend of PKR 10,000 is payable in June.
h) Capital expenditure for buying a plant was incurred on 28th February of PKR 50,000.
i) On March 1, we will buy an equipment on lease and its payment will be done in monthly
instalments of PKR 5000 each, 1st installment is made in advance on March 1.
Month Cash
Sales
Credit
Sales
Credit
Purchases
Cash
Purchases
Salaries Fixed
OH
Manufacturing
expenses
January 50000 10000 8500 5000 18000 11000 7000
February 60000 20000 12000 6000 18000 11000 8000
March 40000 30000 12000 4000 19000 11000 9000
April 60000 40000 15000 7000 19000 11000 10000
May 70000 35000 15000 8000 20000 11000 11000
June 75000 25000 10500 9000 20000 11000 12000
Required:
a) Prepare
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