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4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER BOOK: 4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023 - NSC Accounting - Question 4 - 2023 - Paper 2
Question 4
4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER ... show full transcript
Worked Solution & Example Answer:4.1 Show the amounts for the following transactions in the appropriate columns for the Cash Budget and the Projected Statement of Comprehensive Income in the ANSWER BOOK: 4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023 - NSC Accounting - Question 4 - 2023 - Paper 2
Step 1
4.1.1 A computer costing R26 400 will be purchased for cash on 1 July 2023. Depreciation will amount to R550 per month.
Answer
For the Cash Budget:
- Purchase of computer: R26,400 (under payments column).
For the Projected Statement of Comprehensive Income:
- Depreciation expense: R550 (recorded as an expense).
Step 2
4.1.2 A fixed deposit of R90 000 will be invested on 1 July 2023. Interest at 9% p.a. will be deposited into the business bank account at the end of each month.
Answer
For the Cash Budget:
- Fixed deposit investment: R90,000 (under payments column).
- Interest income at the end of every month:
o Interest = Principal × Rate × Time
o Interest = R90,000 × 9% × rac{1}{12} = R675
Step 3
Step 4
4.2.2 Calculate missing figures (i) to (iii) on the Cash Budget provided.
Answer
i. Cash sales for July 2023 can be calculated by taking the total expected sales and subtracting credit sales (e.g., R1,330,000 × 30% = R399,000).
ii. Loan amount in June 2023: R600,000.
iii. Payment to creditors in July 2023 calculated at 80%: R728,000.
Step 5
4.2.3 Calculate the % increase that workers will receive in July 2023.
Answer
The % increase can be calculated using the formula:
ext{Percentage Increase} = rac{ ext{New Salary} - ext{Old Salary}}{ ext{Old Salary}} × 100
Using values provided: ext{Percentage Increase} = rac{182320 - 172000}{172000} × 100 = 6.0 ext{%}
For reasons, consider current inflation, business requirements, and morale.
Step 6