60.1K
Verified Solution
Link Copied!
North Point Ltds management has and estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June.
$
| Cash Sales | 53,000 |
| Credit Sales | 92,000 |
| Wages (gross) | 22,000 |
| Rent | 6,000 |
| Credit purchases of trading stock | 18,000 |
| Cash purchases of trading stock | 8,000 |
| Loss on sales of asset | 3,000 |
60% of sales credit sales are collected in the month of sale and 40% in the following month.
Credit sales for May was budgeted for $80,000
90% of credit purchases are paid in the month of purchase and 10% in the following month.
Credit purchases for May was budgeted for $22,000
Wages for May was budgeted for $15,000.
PAYG tax deductions are calculated at 20% of gross wages and paid to ATO in the following month of wages paid.
Assessment tasks
Prepare a cash budget for June. (Note: For simplicity ignore GST in your calculations).
Example Only:
| XXXXXX Pty Ltd |
| Cash Budget |
| For the month of XXXX |
| | |
| Details | $ |
| | |
| Receipts | |
| Cash sales | |
| Credit sales | |
| July 10% x XXXX | |
| August 90% x XXXXX | |
| Subtotal | |
| GST | |
| Total Receipts | |
| | |
| Payments | |
| Cash purchase | |
| Credit purchases | |
| June 20% x XXXXX | |
| July 80% x XXXX | |
| Rent | |
| GST | |
| PAYG deductions | |
| Wages | |
| Total Payments | |
| Increase in cash | |
| Opening balance | |
| Closing Balance | |
Note: the above suggested template is only an example, the months indicated under the Credit sales and Credit purchases need to be changed.
Answer & Explanation
Solved by verified expert
