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6.1 Indicate amounts in the appropriate blocks for the Cash Budget and Projected Income Statement for three months ending 31 January 2020 - NSC Accounting - Question 6 - 2019 - Paper 1

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6.1 Indicate amounts in the appropriate blocks for the Cash Budget and Projected Income Statement for three months ending 31 January 2020. - A printer costing R40 8... show full transcript

Worked Solution & Example Answer:6.1 Indicate amounts in the appropriate blocks for the Cash Budget and Projected Income Statement for three months ending 31 January 2020 - NSC Accounting - Question 6 - 2019 - Paper 1

Step 1

Indicate amounts in the appropriate blocks for the Cash Budget and Projected Income Statement for three months ending 31 January 2020.

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Answer

  1. Cash Budget

    • Printer Purchase: R40 800 (30 November 2019)
    • Depreciation: R680 per month for November, December, January (Total: R2 040)
    • Insurance Payment: R48 000 (paid on 1 January 2020)
    • Loan Received: R100 000 (31 December 2019)
    • Loan Repayments: R5 000 (R100 000/20 months)
    • Interest: R1 000 (12% p.a. on R100 000)

  2. Projected Income Statement

    • Depreciation: R2 040 for the 3 months
    • Insurance Expense: Allocate R4 000 for income statement
    • Loan Interest: R1 000 for January 2020 (paid monthly)

Step 2

Calculate the % of debtors who settle their accounts in the 2nd month following the credit sales transaction month.

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Answer

To calculate the percentage of debtors settling their accounts in the 2nd month:

  • Total debtors: R90,000
  • Debtors settling in the 2nd month: R67,500

ext{Percentage} = rac{67,500}{90,000} imes 100 = 75 \\

Step 3

Calculate the % of debtors written off as bad debts at the end of the 3rd month following the credit sales transaction month.

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Answer

To calculate the percentage of debtors written off as bad debts:

  • Total debtors: R90,000
  • Written-off amounts: R22,000

ext{Percentage} = rac{22,000}{90,000} imes 100 = 24.44 \\

Step 4

Explain what she should say to them. Provide TWO points. Quote figures or a calculation.

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Answer

  1. Salary Adjustment: They received a 20% increase (from R1 840 to R2 208).

  2. Increased Responsibilities: The salary was adjusted to reflect increased workloads and market standards.

Step 5

Comment on the performance in September. Quote figures or a calculation.

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Answer

In September, Jacob was under budget, with an expenditure of R16 800 instead of R2 800 budgeted for the delivery of carpets.

Actual Delivery = R2,800 for 1,000 metres = R2.80 per metre.

Step 6

Provide figures to illustrate the impact on sales in September.

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Answer

Sales budget was R490 000; however, actual sales were R380 000, leading to a drop of:

rac{490,000 - 380,000}{490,000} imes 100 ext{ = 22.4 ext{% drop}} \\

Step 7

Explain THREE actions that Thembi took in October in response to the new competitor. Quote figures or a calculation.

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Answer

  1. Promotional Credit Sales: Thembi projected credit sales of R296 000 to stimulate growth.

  2. Adjustment of Selling Price: Thembi reduced prices by R8 per metre.

  3. Training Costs: Thembi incurred R40 000 for training, impacting future sales positively.

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