Paper 2 · 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, 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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