march/ june 2017 pangali co

You know what the receivables are at the start of January. At the end of January, the receivables will be higher by the amount sold in January and lower by the cash received in January.
The cash received in January will be 40% of November sales (because 40% pay after 2 months) and also 60% of December sales (because 60% pay after 1 month).

With regard to the overdraft, you know the overdraft at the start of the month. The overdraft will increase as a result of payments during the month and the interest charge, and the overdraft will reduce by the receipts during the month.

The payables at the start of the month are given as 186,700.
The question says that they will pay 70% of them during the months, so the payables will reduce by 70% x 186,700 = 130,690. It also says that they will buy 250,000 on credit during the month, so this will increase the payables.
Therefore the payables at the end of the month are 186,700 – 130,690 + 250,000 = 306,010.

The overdraft at the start of the month was 240,250. This will increase by the amount paid to payables of 130,690 (as above); it will reduce by the amount received from receivables (288,350); it will increase by the interest of 70,000 to be paid during the month; and it will increase by the operating outflows of 146,500 during the month.
Therefore the overdraft at the end of the month is 240,250 + 130,690 – 288,350 + 70,000 + 146,500 = 299,090