Question 1The following data is available from the various functional budgets prepared at Nur IkaEnterprise for the year 2022:JanuaryRM '000FebruaryRM '000MarchRM '000AprilRM 000Cash sales128847290Credit sales6401,140880760800Purchases for resaleSalaries and wagesOverhead expenses560520320266280238248160150160140Other information is available as follows:(1)5% of all sales on credit are expected to become bad debts. Receipts fromcredit customers are due in the following sales.All goods are bought on credit from suppliers who allow 2.5% cash discount forpayment in the month following purchase.(ii)(iii)Salaries and wages are paid in the month they are earned.(iv) Payments for overhead expenses are made in the month the expenses areincurred. The above overhead budget includes RM28,000 per month fordepreciation.Purchase two new vans, costing RM21,000 each, are to be paid in April.(v)(vi)Rental for new office amounting RM175,000 is to be paid in March.(vii) The balance at the bank at the start of February is expected to be RM220,000.Required:Prepare a monthly Cash Budget for February, March and April showing thebank balance at each end of the month.(a)(b)List TWO (2) benefits from the use of monthly cash budgets.

Cash budget shows the estimated cash balance, receipts and payments

The following data is available from the various functional budgets prepared at Nur Ika Enterprise for the year 2022: February RM *000 March RM *000 72 640 January RM '000 April RM "000 |Cash sales Credit sales Purchases for resale Salaries and wages Overhead expenses 128 84 760 560 90 1,140 800 880 520 320 248 266 280 238 160 150 160 140 Other information is available as follows: (1) 5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the following sales. (ii) All goods are bought on credit from suppliers who allow 2.5% cash discount for payment in the month following purchase. (iii) Salaries and wages are paid in the month they are earned. (iv) Payments for overhead expenses are made in the month the expenses are incurred. The above overhead budget includes RM28,000 per month for depreciation. V) Purchase two new vans, costing RM21,000 each, are to be paid in April. vi) Rental for new office amounting RM175,000 is to be paid in March. vii) The balance at the bank at the start of February is expected to be RM220,000. Required: Prepare a monthly Cash Budget for February, March and April showing the bank balance at each end of the month. a)

The following data is available from the various functional budgets prepared at Nur Ika Enterprise for the year 2022: February RM 000 March RM 000 72 640 January RM '000 April RM "000 |Cash sales Credit sales Purchases for resale Salaries and wages Overhead expenses 128 84 760 560 90 1,140 800 880 520 320 248 266 280 238 160 150 160 140 Other information is available as follows: (1) 5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the following sales. (ii) All goods are bought on credit from suppliers who allow 2.5% cash discount for payment in the month following purchase. (iii) Salaries and wages are paid in the month they are earned. (iv) Payments for overhead expenses are made in the month the expenses are incurred. The above overhead budget includes RM28,000 per month for depreciation. V) Purchase two new vans, costing RM21,000 each, are to be paid in April. vi) Rental for new office amounting RM175,000 is to be paid in March. vii) The balance at the bank at the start of February is expected to be RM220,000. Required: Prepare a monthly Cash Budget for February, March and April showing the bank balance at each end of the month. a)

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 3.3C

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