LESSON
GRADE 11
96
WEEK 28 - Lesson 8 of 12
Cash budgets
ACTIVITY 6
REQUIRED
1. Complete the Debtors’ collection schedule of Baloyi Traders for the period
01 April 2013 to 31 May 2013.
2. Prepare the Cash Budget of Baloyi Traders for the period
01 April 2013 to 31 May 2013.
INFORMATON
1. Cash in the Bank on 31 March 2013, R 18 400
2. Summary of transactions
ACTUAL
January February
March
BUDGETED
April
May
Cash sales
R 27 500 R 24 500
R 21 500
R 27 500
R 36 000
Credit sales
R 28 400 R 29 500
R 32 500
R 28 500
R 34 500
Cash purchases
of stock
Credit purchases
of stock
Operating
expenses
R 12 000 R 15 800
R 16 100
R 12 400
R 14 700
R 16 850 R 16 250
R 15 450
R 14 800
R 17 900
R 6 600
R 7 600
R 7 000
??
??
3. Credit sales are to be collected as follows:




20% in the month of sale (5% settlement discount is allowed for prompt settlement)
60% after 30 days (first month after sale)
18% after 60 days (second month after sale)
2% is to be written off after 90 days (third month after sales)
96 Accounting Grade 11 - CAPS
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4. Creditors are paid one month after purchases.
5. Operating expenses are paid in cash one month after the expense occurred. It is
expected that the operating expenses would increase by 5% per month over the budget
period.
6. The following withdrawals are made monthly by the owner:
 Cash to pay for owners’ personal telephone
R 300
 Trading stock
R 700
7. Fixed deposit of R 45 000 with an interest of R 4 000 is due to mature on the 15 of May
2013.
8. Depreciation is calculated at R 3 500 per month.
9. A new vehicle costing R 53 000 will be purchased and paid in April 2013.
ANSWER
BALOYI TRADERS
DEBTORS COLLECTION SCHEDULE FROM 1 APRIL 2013 TO 30 MAY 2013
MONTH
CREDIT SALES
OCTOBER
NOVEMBER
CASH FROM DEBTORS
96 Accounting Grade 11 - CAPS
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BALOYI TRADRES
CASH BUDGETS FOR THE MONTH 1 APRILTO 30 MAY 2013
APRIL
CASH RECEIPTS
MAY
TOTAL RECEIPTS
CASH PAYMENTS
TOTAL PAYMENTS
Cash surplus ( Shortfall)
Bank - opening balance
Bank – closing balance
96 Accounting Grade 11 - CAPS
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ANSWERS
LESSON
96
BALOYI TRADERS
DEBTORS COLLECTION SCHEDULE FROM 1 APRIL TO 31 MAY 2013
CREDIT SALES
APRIL
MAY
FEBRUARY
29 500
5 310
MARCH
APRIL
MAY
32 500
28 500
34 500
CASH FROM DEBTORS
19 500
5 415
5 850
17 100
6 555
30 225
29 505
BALOYI TRADRES
CASH BUDGETS FOR THE MONTH 01 APRIL TO 31 MAY 2013
APRIL
CASH RECEIPTS
Cash sales
Cash from debtors
Fixed deposit
Interest on fixed deposit
MAY
27 500
30 225
36 000
29 505
45 000
4 000
TOTAL RECEIPTS
57 725
114 505
CASH PAYMENTS
Cash purchases
Payments to creditors
Operating expenses
Drawings
Vehicles
12 400
15 450
7 600
300
53 000
14 700
14 800
7 980
300
TOTAL PAYMENTS
88 750
37 780
Cash surplus ( Shortfall)
Bank - opening balance
Bank – closing balance
(31 025)
18 400
(12 625)
76 725
(12 625)
64 100
Workings
: Credit sales (April)
Expenses
28 500 × 20% =5 700
7 600 × (100% + 5%)
5 700 × (100% -5%)
7 600 × 105% = 7 980
5 700 × 95% = 5 415
96 Accounting Grade 11 - CAPS
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