The following information extracted from the records of P Ltd. Sales for October, November and December, 2018 are ₹90,000, ₹1,10,000 and ₹80,000 respectively. 40% of its sales are expected to be for cash. Of its credit s
CS Executive · Cost and Management Accounting · PYQS · June 2019
The following information extracted from the records of P Ltd. Sales for October, November and December, 2018 are ₹90,000, ₹1,10,000 and ₹80,000 respectively. 40% of its sales are expected to be for cash. Of its credit sales 70% are expected to pay in the month after sales and take 2% discount on it. Balance is expected to pay in second month after sales and 3% of it is expected to bad debts. What are the sales receipts to be shown in cash budget for the month of December?
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Budgeting
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