On 1 January 2022, Ms. Suraya opened the Bestari Bookstore with a cash capital of RM50,000 and premises worth RM140,000. Below are his estimated business receipts and payments for the quarter ended 31 March 2022. a) Estimated purchases and sales are as per below: Month Purchases Sales RM RM January February March 20,000 25,000 30,000 40,000 50,000 60,000 All Purchases are in cash while 60% of sales are on credit with a credit period of one month. b) In January, a used vehicle costing RM18,000 was purchased with a down payment of RM12,000 and the remaining debt will be paid in equal instalments for 8 months. c) A RM30,000 bank loan is expected to be received in February. Monthly loan repayments of RM600 start in March. d) Starting in February, some premises will be rented out with a monthly rental of RM1800. Rent will be received at the beginning of each month. e) In March, Ms. Suraya is expected to withdraw RM6,000 in business cash for the purchase of shares of Syarikat Nusantara Berhad. Employee salaries and operating expenses amounting to RM2,500 and RM300 respectively are paid at the end of each month. f) The monthly payment rate is estimated at RM700 and is expected to drop by 10% in March. g) At the end of March, the business made a sales promotion involving an expenditure of RM2,400. Required: Prepare a Cash Budget for the quarter ended 31 March 2022.
On 1 January 2022, Ms. Suraya opened the Bestari Bookstore with a cash capital of RM50,000 and premises worth RM140,000. Below are his estimated business receipts and payments for the quarter ended 31 March 2022. a) Estimated purchases and sales are as per below: Month Purchases Sales RM RM January February March 20,000 25,000 30,000 40,000 50,000 60,000 All Purchases are in cash while 60% of sales are on credit with a credit period of one month. b) In January, a used vehicle costing RM18,000 was purchased with a down payment of RM12,000 and the remaining debt will be paid in equal instalments for 8 months. c) A RM30,000 bank loan is expected to be received in February. Monthly loan repayments of RM600 start in March. d) Starting in February, some premises will be rented out with a monthly rental of RM1800. Rent will be received at the beginning of each month. e) In March, Ms. Suraya is expected to withdraw RM6,000 in business cash for the purchase of shares of Syarikat Nusantara Berhad. Employee salaries and operating expenses amounting to RM2,500 and RM300 respectively are paid at the end of each month. f) The monthly payment rate is estimated at RM700 and is expected to drop by 10% in March. g) At the end of March, the business made a sales promotion involving an expenditure of RM2,400. Required: Prepare a Cash Budget for the quarter ended 31 March 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 4
On 1 January 2022, Ms. Suraya opened the Bestari Bookstore with a cash capital of RM50,000 and
premises worth RM140,000. Below are his estimated business receipts and payments for the quarter
ended 31 March 2022.
a) Estimated purchases and sales are as per below:
Month
Purchases
Sales
RM
RM
January
February
March
20,000
25,000
30,000
40,000
50,000
60,000
All Purchases are in cash while 60% of sales are on credit with a credit period of one month.
b) In January, a used vehicle costing RM18,000 was purchased with a down payment of
RM12,000 and the remaining debt will be paid in equal instalments for 8 months.
c) A RM30,000 bank loan is expected to be received in February. Monthly loan repayments of
RM600 start in March.
d) Starting in February, some premises will be rented out with a monthly rental of RM1800. Rent
will be received at the beginning of each month.
e) In March, Ms. Suraya is expected to withdraw RM6,000 in business cash for the purchase of
shares of Syarikat Nusantara Berhad. Employee salaries and operating expenses amounting
to RM2,500 and RM300 respectively are paid at the end of each month.
f) The monthly payment rate is estimated at RM700 and is expected to drop by 10% in March.
g) At the end of March, the business made a sales promotion involving an expenditure of
RM2,400.
Required:
Prepare a Cash Budget for the quarter ended 31 March 2022.
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