CASH BUDGET
REQUIRED:
Prepare the cash budget of Ding Dong Traders for February and March 2023. Show
workings for the collection from debtors and the payments to creditors.
INFORMATION:
1. Information for the three months ended 31 March 2023:
Actual Budgeted
January February March
Sales (80 % on credit) 171 000 197 000 248 000
Purchases (95 % on credit) 163 000 168 000 182 000
Wages paid 18 000 18 000 19 000
Sundry cash expenses 12 000 12 000 12 000
Depreciation 1 000 1 000 1 000
2. Additional information:
2.1 It is expected that debtors will settle their accounts as follows:
10 % within the same month as the sale subject to the 2 % discount
70 % during the first month after the month of sale, and
18 % during the second month after the month of sale.
The remaining 2 % usually represent bad debts.
2.2 The credit sales for December 2022 were R186 200.
2.3 Trade creditors are paid in the month following the month in which the transaction
was made at a discount of 2 %.
2.4 Expenses and income, unless otherwise stated, are paid and received as they arise.
2.5 The favourable bank balance on 1 February 2023 was R6 300.
CASH BUDGET
REQUIRED:
Prepare the cash budget of Ding Dong Traders for February and March 2023. Show
workings for the collection from debtors and the payments to creditors.
INFORMATION:
1. Information for the three months ended 31 March 2023:
Actual Budgeted
January February March
Sales (80 % on credit) 171 000 197 000 248 000
Purchases (95 % on credit) 163 000 168 000 182 000
Wages paid 18 000 18 000 19 000
Sundry cash expenses 12 000 12 000 12 000
Depreciation 1 000 1 000 1 000
2. Additional information:
2.1 It is expected that debtors will settle their accounts as follows:
10 % within the same month as the sale subject to the 2 % discount
70 % during the first month after the month of sale, and
18 % during the second month after the month of sale.
The remaining 2 % usually represent bad debts.
2.2 The credit sales for December 2022 were R186 200.
2.3 Trade creditors are paid in the month following the month in which the transaction
was made at a discount of 2 %.
2.4 Expenses and income, unless otherwise stated, are paid and received as they arise.
2.5 The favourable bank balance on 1 February 2023 was R6 300.
