BDL Ltd. is currently preparing its cash budget for the year to 31 March 2014. An extract from its
sales budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after
sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the
remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget
for May 2013 is
(a) Rs 60,532
(b) Rs 61,120
(c) Rs 66,532
(d) Rs 86,620
sales budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after
sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the
remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget
for May 2013 is
(a) Rs 60,532
(b) Rs 61,120
(c) Rs 66,532
(d) Rs 86,620