Creditors’ Payment Schedule (Creditors’ Budget) (Grade 12 NSC Matric Accounting): Flashcards
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Creditors' payment schedule definition
Creditors' payment schedule definition
Tool predicting when to pay suppliers for credit purchases
What creditors' payment schedule shows
What creditors' payment schedule shows
When cash payments will be made to suppliers
Payment timing for credit purchases
Payment timing for credit purchases
Paid in full the month following purchase
Stock balance assumption
Stock balance assumption
Opening balance maintained as base stock monthly
Total purchases when stock levels maintained
Total purchases when stock levels maintained
Total purchases = Cost of sales
Typical cash vs credit purchases split
Typical cash vs credit purchases split
20% cash, 80% credit
Cost of sales formula (100% mark-up on cost)
Cost of sales formula (100% mark-up on cost)
Sales ×
Opening creditors balance placement
Opening creditors balance placement
Included in first payment month
Where creditors' schedule feeds into
Where creditors' schedule feeds into
Cash budget under 'Cash Payments'
When January credit purchases are paid
When January credit purchases are paid
February (following month rule)