Province of the EASTERN CAPE DEPARTMENT OF EDUCATION CURRICULUM SUPPORT AND MANAGEMENT
Note to Learners:
- The case study comprises TWO separate Questions.
- Answer both Questions in the special Answer Book provided.
- Show all workings to earn part marks.
Question 1: (28 marks)
The information relates to Tokyo Traders, for the two months August and September 2021.
REQUIRED:
1.1 Complete the Debtors Collection Schedule for September 2021 and the extract of the Cash Budget. Note that some amounts are provided in the Answer Book.
Related Items
1.2 Calculate the missing amounts on the Cash Budget denoted by (i) to (v)
INFORMATION
A. Sales and Purchases
| | July | August | September |
| Total Sales | R 435 000 | R 450 000 | ? |
- Credit sales comprises 60% of total sales
- Debtors pay according to the following trend:
- 40% pay in the month of sales and receive 5% discount.
- 35% pay in the month following the month of sales
- 23% pay in two months after the month of sales
- The balance accounts for bad debts
- A profit mark-up of 25% is applied on all sales.
- A base stock is maintained. Stock sold is replaced in the month of sales.
- 80% of stock is purchased on credit. Creditors are paid in the second month following the month of purchases. (60 days)
B. Information extracted from the Cash Budget: