# CMA Study Group

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## CASH DISBURSEMENTS.

• #### 1.  CASH DISBURSEMENTS.

Posted 06-20-2022 06:26 AM
in my working the pending for april is 91.
can anyone explain how they got 104?

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Tayba Al-Mehdar
Controller
Khobar
Saudi Arabia
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• #### 2.  RE: CASH DISBURSEMENTS.

Posted 06-21-2022 02:41 AM

Hello,

Frist understand question this is very easy just read question carefully and follow collection pattern is 60% in the month of sales means first month of sales. And 25% in the month after sales means 2nd  Second Month after sales and 15% second month after sales, means 3rd Month after sales.  Clear right

They are confusing after given 2% discount in the month of sales but you need to understand  clearly they are giving 2% discount to those customers who paid 100%  full amount in the month of sales but there no customers who paid full amount because collection pattern is less than 100% in the month of sales they are paying 60% in the sales month and 25% sales in second month and 15% after second month means 3rd month. So there is no need to take discount to any sales amount.

Let's understand how we are getting collection after sales following:

January sales amount : \$220,000

February sales amount : \$ 200,000

March sales amount : \$280,000

April sales amount : \$260,000

So, now we need to understand how much collection we collected from sales figures as per collection pattern which is given above in the question

1) First January sales \$220,000

In the First Month means Jan month of sales \$220,000 we collected 60% means \$132,000

In the 2nd Month Feb we collected Remaining 25% of \$220,000 means \$55,000

In the 3rd Month March we collected Remaining 15% of \$220,000 means \$33000

60% + 25%+15% = 100% we got in March month there is no pending collection for the month of Jan Right!

2)Now February sales \$200,000

In the First Month means Feb month of sales \$200,000 we collected 60% as per collection pattern \$120,000

In the 2nd Month Means March we collected remaining 25% of \$200,000 as per collection pattern \$50,000

In the 3rd Month means April we collected remaining pending amount \$30,000

We collected 100% in Feb month also.

3) Now Let's go to March sales amount \$280,000

In the First month means March month of sales \$280,000 we collected 60% as per collection pattern \$168,000

In the Second month means April we collected remaining 25% of 280,000 means \$70,000

In the 3rd Month Means May remaining 15% of 280,000 Still not yet collected  or account receivable balance \$42,000 in the may month.

We collected in this month only 85%  \$168,000+\$70,000 = 238,000 so remaining pending amount is \$42000

So the uncollected balance will be collect in the month of May is \$42000.

4) Last one April sales amount \$260,000

In the first month of sales means April we collected 60% of \$260,000  as per collection pattern \$156,000

But in the second month means May we did not received any amount so whatever balance is pending  we called accounts receivable the balance which will be collected in the future period of time

\$260,000-156000 = \$104,000 is Pending accounts receivable balance for May 25% and June 15 %

So the answer is here ( Add Pending balance to get accounts receivable for the month of May)

Pending balance in the month of March \$42000 and Last month April pending balance is 104,000

\$42000+104000 = 146,000 (D).

Thanks, I hope u understand this

I am waiting for your feed back.

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