A-LevelAccountingBudgeting and budgetary control9706/12 · Oct/Nov 2013 · Q301 Mark

Ted plans to buy a motor vehicle for $12000 on 1 May 2014. He intends to pay half at the time of purchase and to take out a loan at 6% interest a year to finance the balance. The loan is to be repaid on 1 November 2014. Which figures does Ted include in his cash budget for 2014? May $ November $

A6000 6000

B6000 6180

C12000 0

D12000 180

✓ Correct answer

B: 6000 6180

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Topic: Budgeting and budgetary control, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2013 Paper 1 Variant 2, question 30.

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