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from the following information compute the collection from debtors for the month of 620399

From the following information, compute the collection from Debtors for the month of June, July and August:

April

May

June

July

August

Sale(Rs.)

1,00,000

1,20,000

90,000

1,05,000

1,25,000

20% of sales are made in cash. Debtors are allowed a 2-month credit. They will receive 5% discount on sale if they pay off their dues within 1 month from the date of sale. About four-fifth of the Debtors normally clear their dues to avail the Cash Discount, but the remaining Debtors pay on the due date only.

Problem 20

From the following information, prepare the Cash Budget for the 3 months—September, October and November of 2004:

Factory

Office

Month

Sales

Purchase

Wages

Expenses

Expenses

July

50,000

28,000

3,400

3,200

4,000

August

65,000

32,500

3,700

3,300

4,200

September

70,000

37,200

3,900

3,450

4,350

October

60,000

29,500

4,200

3,600

4,420

November

84,000

39,700

4,500

3,700

4,800

Additional Information:

  1. A Sales Commission at 5% on sales, which is due in the month following the month in which the sales dues are collected, is payable in addition to the Office Expenses.
  2. The period of credit allowed to Debtors is 2 months.
  3. A month’s credit is obtained from the Creditors.
  4. Wages are paid on the 1st and 16th of each month in respect of dues for a period of 15 days, preceding those days.
  5. Other Expenses are paid in the month in which they are due.
  6. For purchase of an asset under instalment-payment system, an instalment of Rs. 1,250 per month is paid.
  7. Bank Balance on 1st September is Rs. 15,200.

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