Question

The income and expenditure forecast for three months ended 31.3.2006 from the following particulars Sales (Credit) Rs. (DEBTORS) Wages Rs. Month Purchases (Credit) 2005-2006 Rs.(CREDITORS) Nov. 2005 100000 80000 80000 Dec 2005 90000 70000 70000 Jan 2005 110000 100000 100000 Feb 2005 60000 95000 95000 Mar 2006 80000 130000 130000 You are given the following information: 40% of the credit sales will be realized in the month following the sales and remaining 60% in the second month following. The creditors will be paid in the month following the purchases. Interest of Rs.5000 will have to be paid in the month of Feb.2006.Income tax of rs.15000 willhave to be paid in the month of March 2006.Wages are paid in the same month. The opening balance of cash as on 1.1.2006 was Rs.20000 ​

Answer 1

Answer:

Explanation:The question seems to be wrong.  The amounts in purchases and wages are same for all months.  

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