Doubt regarding payments of cash forcast

Financial Management

for payment of cash for A ltd, shouldn't the amount be 55000 since the credit terms is 1 month calender month. Aren't we supposed to take purchase of Dec rather than for Nov as answer shown is the amount corresponding to Nov Video Details ------------- Working Capital Management Treasury & Cash Management #21. Illustration 6 - Prachi Ltd [Solution - Clear Funds]

Parvathy P

CA Final

★ 6K+

03-Jan-25 01:26

208

Answers (1)

But question clearly says payment is scheduled on 7th Jan. Question also says amount is not for any specific month, but a standing amount and differences are reconciled and adjusted periodically.

Sriram Somayajula

Admin

03-Jan-25 11:16