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Debtors Collection Schedule Overview

This document outlines a cash budget for Q4 Mark Ltd. It includes a debtors collection schedule, creditors payment schedule, and cash budget. The debtors collection schedule shows projected cash collections from credit sales over several months. The creditors payment schedule shows projected payments to suppliers over months. The cash budget combines these with other cash inflows and outflows to calculate monthly and cumulative cash surpluses and deficits. It projects increasing cash deficits over time, with a closing deficit of $74,590 by the end of the period.

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Barack Mike
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73 views3 pages

Debtors Collection Schedule Overview

This document outlines a cash budget for Q4 Mark Ltd. It includes a debtors collection schedule, creditors payment schedule, and cash budget. The debtors collection schedule shows projected cash collections from credit sales over several months. The creditors payment schedule shows projected payments to suppliers over months. The cash budget combines these with other cash inflows and outflows to calculate monthly and cumulative cash surpluses and deficits. It projects increasing cash deficits over time, with a closing deficit of $74,590 by the end of the period.

Uploaded by

Barack Mike
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

CASH BUDGET

Cash incomes and expenses


The difference between cash incomes and cash expenses is either Surplus or deficit
When incomes are than expenses, we get a SURPLUS and vice versa.

ILLUSTRATION= Q4 MARK LTD

a) Debtors collection schedule


Relates to how the cash on credit sales(Debtors) is collected from debtors.
March April May June July
Total sales 37,000.00 33,000.00 45,000.00 55,000.00 75,000.00
Credit sales@80% 29,600.00 26,400.00 36,000.00 44,000.00 60,000.00

DEBTORS COLLECTION SCHEDULE:


20% 7,200.00 8,800.00 12,000.00
65% 17,160.00 23,400.00 28,600.00
15% 4,440.00 3,960.00 5,400.00
Total collection 28,800.00 36,160.00 46,000.00

b) Creditors payment schedule:


Working: Purchases
Opening stock 5,250.00 7,000.00 10,500.00
Purchases 22,750.00 31,500.00 37,000.00
Closing stock 7,000.00 10,500.00 5,500.00
COS 21,000.00 28,000.00 42,000.00

CREDITORS PAYMENT SCHEDULE:


50% 11,375.00 15,750.00 18,500.00
50% 11,100.00 11,375.00 15,750.00
Total payment 22,475.00 27,125.00 34,250.00

c) CASH BUDGET
Cash incomes:
Opening cash balance 8,400.00 8,725.00 (83,740.00)
Cash sales 9,000.00 11,000.00 15,000.00
Debtors collection(a) 28,800.00 36,160.00 46,000.00
Total Cash receipt 46,200.00 55,885.00 (22,740.00)
Cash payments:
Creditors payment 22,475.00 27,125.00 34,250.00
Admin expenses 3,700.00 4,100.00 5,100.00
Land purchase 4,300.00 - -
Dividend payment - 100,000.00 1,300.00
Selling expenses 7,000.00 8,400.00 11,200.00
Repayment of overdraft
Total cash payment 37,475.00 139,625.00 51,850.00
Cash surplus/(deficit) for the month 8,725.00 (83,740.00) (74,590.00)
Cash from Bank Overdraft - - -
Closing cash balance 8,725.00 (83,740.00) (74,590.00)

End April
August

COS=OS + Purch - CS
Purch=COS+CS-OS
-
22,000.00

5500 5900 6900

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