Customers settle their accounts one month after the month of sale Calculate Cash in for Aug, Sept and Oct WORK OUT CASH SALES AND CREDIT SALES IN UNITS JULY AUG SEPT OCT Sales (units) 5,000 6,000 8,000 7,000 Cash sales (units) 50% 2,500 3,000 4,000 3,500 Cash sales £ 2500x£20 = 3,000x£20 4,000x£20 3,500x£20 £50,000 =£60,000 =£80,000 =£70,000 Received Received Received Received July Aug Sept Oct Credit sales (units) 50% 2,500 3,000 4,000 3,500 Credit sales £ 2500x£20 = 3,000x£20 4,000x£20 3,500x£20 £50,000 =£60,000 =£80,000 =£70,000 Received Received Received Received Aug Sept Oct Nov Cash In Cash sales £50,000 £60,000 £80,000 £70,000 Credit sales 0 £50,000 £60,000 £80,000 EXERCISE 15 JULY AUG SEPT OCT Sales (units) 2,000 3,000 6,000 2,000 Selling price is £10 per unit Sales are split 80% cash and 20% credit Customers settle their accounts one month after the month of sale
Customers settle their accounts one month after the month of sale Calculate Cash in for Aug, Sept and Oct WORK OUT CASH SALES AND CREDIT SALES IN UNITS JULY AUG SEPT OCT Sales (units) 5,000 6,000 8,000 7,000 Cash sales (units) 50% 2,500 3,000 4,000 3,500 Cash sales £ 2500x£20 = £50,000 Received July 3,000x£20 =£60,000 Received Aug 4,000x£20 =£80,000 Received Sept 3,500x£20 =£70,000 Received Oct Credit sales (units) 50% 2,500 3,000 4,000 3,500 Credit sales £ 2500x£20 = £50,000 Received Aug 3,000x£20 =£60,000 Received Sept 4,000x£20 =£80,000 Received Oct 3,500x£20 =£70,000 Received Nov Cash In Cash sales Credit sales £50,000 0 £60,000 £50,000 £80,000 £60,000 £70,000 £80,000 EXERCISE 15 JULY AUG SEPT OCT Sales (units) 2,000 3,000 6,000 2,000 Selling price is £10 per unit Sales are split 80% cash and 20% credit Customers settle their accounts one month after the month of sale
ACCnotes-N5-Cash-Budgets.docx