Paper 2 · Specimen 2026 · Cash Budgeting

A firm forecasts September sales revenue of $180 000, of which 30% is for cash. Cash customers pay in the month of sale and are allowed a 5% cash discount. Calculate the cash received from cash sales in September.

Model answer

51300

Also accepted: 51 300, $51 300

Explanation

Cash sales = 30% of $180 000 = $54 000. Cash customers receive a 5% discount for paying in the month of sale, so cash actually received = $54 000 x 95% = $51 300.

Derived from ZIMSEC Accounting Paper 2, specimen 2026, Q1

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