Following is the summary of forecasted incomes and expenditures of AZ Ltd. for the months from January to March, 2024: Month Sales (₹) Purchase (₹) Wages (₹) December' 23 60,000 36,000 9,000 January' 24 62,000 38,000 8,0
CS Executive · Corporate and Management Accounting · PYQS · December 2023
Following is the summary of forecasted incomes and expenditures of AZ Ltd. for the months from January to March, 2024: Month Sales (₹) Purchase (₹) Wages (₹) December' 23 60,000 36,000 9,000 January' 24 62,000 38,000 8,000 February' 24 64,000 33,000 10,000 March' 24 58,000 39,000 8,500 Cash balance on 01.02.2024 will be ₹ 5,000. Advance tax payable in March' 24 is ₹ 10,000. If credit allowed by suppliers is two months and allowed to customers is one month, and lag in payment of wages one month. The expected closing balance of cash at the end of February' 24 will be:
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Management Accounting
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