From the following details of a company, prepare its Cash Budget for 3 months that ended...
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From the following details of a company, prepare its Cash Budget for 3 months that ended on 30 September 2008: a. Balance on 30 June 2008: Cash in hand and at bank-Rs. 13,000; Debtors-Rs. 1,80,000 (Rs. 1,00,000 for sales in May and Rs. 80,000 for sales in June); Creditors-Rs. 65,000 (for purchases in June); Stock in trade-Rs. 45,000. b. Budgeted Sales: July-Rs. 1,00,000; August-Rs. 1,20,000; September-Rs. 1,40,000. c. All sales are at a profit of 25% on cost (being cost of goods sold only). d. Debtors: Credit allowed-2 months; 50% of credit allowed is expected to be received on time, balance in the subsequent month. e. Creditors: Credit received-1 month. f. Time lag: Wages-1/2 month; Other Expenses-1/4 month. g. Stock level to be raised to Rs. 50,000 in July and to Rs. 55,000 in August. h. Actual and Budgeted Wages: June-Rs. 8,000 (actual); July-Rs. 9,000; August-Rs. 9,000; September-Rs. 10,000. i. Actual and Budgeted Expenses: June-Rs. 6,000 (actual); July-Rs. 6,000; August-Rs. 5,000; September-Rs. 7,000. j. Advance Income Tax in September-Rs. 7,000 and Purchase of machinery in August-Rs. 10,000. k. 10% of Total Sales and 20% of Total Purchases are on cash basis. Ans: Closing Cash Balance: July-Rs. 23,500; August-Rs. 34,700; September-Rs. 60,400. From the following details of a company, prepare its Cash Budget for 3 months that ended on 30 September 2008: a. Balance on 30 June 2008: Cash in hand and at bank-Rs. 13,000; Debtors-Rs. 1,80,000 (Rs. 1,00,000 for sales in May and Rs. 80,000 for sales in June); Creditors-Rs. 65,000 (for purchases in June); Stock in trade-Rs. 45,000. b. Budgeted Sales: July-Rs. 1,00,000; August-Rs. 1,20,000; September-Rs. 1,40,000. c. All sales are at a profit of 25% on cost (being cost of goods sold only). d. Debtors: Credit allowed-2 months; 50% of credit allowed is expected to be received on time, balance in the subsequent month. e. Creditors: Credit received-1 month. f. Time lag: Wages-1/2 month; Other Expenses-1/4 month. g. Stock level to be raised to Rs. 50,000 in July and to Rs. 55,000 in August. h. Actual and Budgeted Wages: June-Rs. 8,000 (actual); July-Rs. 9,000; August-Rs. 9,000; September-Rs. 10,000. i. Actual and Budgeted Expenses: June-Rs. 6,000 (actual); July-Rs. 6,000; August-Rs. 5,000; September-Rs. 7,000. j. Advance Income Tax in September-Rs. 7,000 and Purchase of machinery in August-Rs. 10,000. k. 10% of Total Sales and 20% of Total Purchases are on cash basis. Ans: Closing Cash Balance: July-Rs. 23,500; August-Rs. 34,700; September-Rs. 60,400.
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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