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The following information pertains to X Traders for the three months ended 30 June 2022: . Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation Show Transcribed Text 3 Show Transcribed Text C 3 Actual April R 500 000 360 000 70 000 28 000 2 000 Budgeted May R 540 000 410 000 90 000 32 000 2 000 It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale Required: Prepare the Cash Budget of X Traders for June and July 2022. June R • The remaining 5% is usually written off as bad debts. Trade creditors are paid in the month after the purchases at a discount of 5%. • 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. • Expenses are paid as they arise. • The favorable bank balance on 1 May was R30 000. 580 000 450 000 100 000 36 000 2 000

The following information pertains to X Traders for the three months ended 30 June 2022: . Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation Show Transcribed Text 3 Show Transcribed Text C 3 Actual April R 500 000 360 000 70 000 28 000 2 000 Budgeted May R 540 000 410 000 90 000 32 000 2 000 It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale Required: Prepare the Cash Budget of X Traders for June and July 2022. June R • The remaining 5% is usually written off as bad debts. Trade creditors are paid in the month after the purchases at a discount of 5%. • 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. • Expenses are paid as they arise. • The favorable bank balance on 1 May was R30 000. 580 000 450 000 100 000 36 000 2 000

FINANCIAL ACCOUNTING
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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The following information pertains to X Traders for the three months ended 30 June 2022: Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation Show Transcribed Text 3 Ć Show Transcribed Text Actual April R 500 000 360 000 70 000 28 000 2 000 Budgeted May R 540 000 410 000 90 000 32 000 2 000 Required: Prepare the Cash Budget of X Traders for June and July 2022. June R It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale 580 000 450 000 100 000 36 000 2000 • The remaining 5% is usually written off as bad debts. • Trade creditors are paid in the month after the purchases at a discount of 5%. • 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. • Expenses are paid as they arise. • The favorable bank balance on 1 May was R30 000.
Transcribed Image Text:The following information pertains to X Traders for the three months ended 30 June 2022: Sales (20% for cash and 80% on credit) Purchases (10% for cash 90% on credit) Salaries and wages paid Cash expenses Depreciation Show Transcribed Text 3 Ć Show Transcribed Text Actual April R 500 000 360 000 70 000 28 000 2 000 Budgeted May R 540 000 410 000 90 000 32 000 2 000 Required: Prepare the Cash Budget of X Traders for June and July 2022. June R It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale 580 000 450 000 100 000 36 000 2000 • The remaining 5% is usually written off as bad debts. • Trade creditors are paid in the month after the purchases at a discount of 5%. • 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were incurred. • Expenses are paid as they arise. • The favorable bank balance on 1 May was R30 000.
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