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company has a current cash balance of $7,000, trade receivables of $15,000 and trade payables of $40,000. The company can sell goods costing $50,000 for £$70,000 next month.
One half of all sales are collected in the month of sale and the remainder in the following month. All purchases are made on credit and paid during the following month. Inventory levels will remain constant during the month. General cash expenses will be $60,000 during the month.
The cash balance at the end of the month is overdrawn by $______
Solution:
The cash balance at the end of the month is overdrawn by $43,000.
Opening balance 7000
Receipts from payables:
Add. Re previous month’s sales (= opening receivables) 15000
Add. Re this month’s sales (= half this month’s sales) 5000
Less Payments to payables (= opening payables) (40000)
Less Expenses (60000)
Equal Bank overdraft 43000Please help sir. I got my paper near and such questions, I never did in BPP kit or book.
Question 2
Which of the following are features of an efficient and effective cost coding system?(i) Codes need to be complex to include all items.
(ii) Each code must have a combination of alphabetic and numeric characters. (iii) Codes for a particular type of item should be consistent in length and structure.(i) only
(iii) only
(i) and (ii)
(ii) and (iii)Answer is B. I did correct but my question is that is (i) wrong?
If we had choice of (i and iii) so should we select it or still B?Q1 There seems to be an error somewhere in the question. I don’t see where the line:
“Add. Re this month’s sales (= half this month’s sales) 5000” comes from.
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