Sales (in units): Jan. 1,000, Feb. 2,000, Mar. 3,000, Apr. 4,000, May 5,000. 25% of the Purchases are on cash basis and the balance on credit basis. Uniform Selling Price ₹20 per unit. This price was fixed after adding 2
CS Executive · Corporate and Management Accounting · PYQS · December 2020
Sales (in units): Jan. 1,000, Feb. 2,000, Mar. 3,000, Apr. 4,000, May 5,000. 25% of the Purchases are on cash basis and the balance on credit basis. Uniform Selling Price ₹20 per unit. This price was fixed after adding 25% to cost. No stock remains at the end of a month. Purchases are made one month in advance and 50% of Credit purchases are paid within one month and the balance in two months. Calculate the total amount of Cash Purchases and Payment to Creditors during the month of April :
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Management Accounting
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