ABC Ltd. is currently reviewing its cash budget for the year ended 31st March, 2020. An extract from its sales budget for the same year shows the following sales values : Month | ₹ March | 60,000 April | 70,000 May | 55,
CS Executive · Cost and Management Accounting · PYQS · December 2019
ABC Ltd. is currently reviewing its cash budget for the year ended 31st March, 2020. An extract from its sales budget for the same year shows the following sales values : Month | ₹ March | 60,000 April | 70,000 May | 55,000 June | 65,000 40% of its sales are expected to be for cash. Out of its credit sales, 70% are expected to pay in the month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale and the remaining 3% are expected to be bad debts. The value of sales to be shown in the cash budget for May 2019 is:
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Cash Budget
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