In ama practice mannual, Question no 5, cash budget at 4.17 budget chapter. How they have calculated purchases (under payment)?
112000, 128000, 120000, 160000, 144000, 96000
Please help me
Menu
Urgent help
Replies (1)
READ POINT NO. (d)
"d) Budgeted sales of each month are purchased and paid for in the preceding month;"
Means for sale in February excel limited have purchased in january and sales price is 25% above cost ie. 125% of cost as given in point no. (c)
hence for January Cash outflow for purchases is:
(1,40,000*100/125) = 112000
in this way we will get purchase of each month.
that's why they have given sales of july so that we can calculate purchase price of june
"d) Budgeted sales of each month are purchased and paid for in the preceding month;"
Means for sale in February excel limited have purchased in january and sales price is 25% above cost ie. 125% of cost as given in point no. (c)
hence for January Cash outflow for purchases is:
(1,40,000*100/125) = 112000
in this way we will get purchase of each month.
that's why they have given sales of july so that we can calculate purchase price of june
Recent Threads
- Income tax act 40 A (3)
- Transmission of deceased's shares in physical form
- Shall I pay GST payment for unkonwnly cancelled in
- Error in GSTR1 filing for October 25
- Inverted Rate structure .
- Exemption to be climed
- GST TDS u/s 51 Applicability on RBI and it's subs
- Time allowed to buy another asset
- ITR not processed for the FY 2024-25
- Gift of money to my wife.
Related Threads
CAclubindia
