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 Current month credit sales for each month. Calculate 1st month credit sales for each month Calculate 2nd month credit sales for each month.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 19E: Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28....
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Question
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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