Question
Freewheel LTD is in the process of preparing its master budget for the six months ending December 19X2 The balance sheet for the year ended
Freewheel LTD is in the process of preparing its master budget for the six months ending December 19X2 The balance sheet for the year ended 30 June 19X2 is estimated to be as follows:
The budget committee have derived the following trading forecasts for the six months ended 31 December 19X2.
Sales Purchases Wages Overheads Purchase Issue of Dividends Cost Deprec prov NBV
in units and Salaries excl deprec of fixed assets 20.000
May 4.000 12.000 8.000 7.000 Fixed assets 140.000 14.000 126.000
June 4.200 13.000 8.000 7.000 Current assets
July 4.500 14.000 8.000 7.000 Stock 25.000
August 4.600 18.000 10.000 7.000 Trade debtors 24.600
September 4.800 16.000 10.000 7.000 20.000 Bank 3.000
October 5.000 14.000 10.000 8.000 10.000 Net current liabilities 52.600
November 3.800 12.000 12.000 8.000 30.000 Creditors amounts falling due within one year
December 3.000 12.000 12.000 8.000 Trade creditors 25.000
Other creditors 9.000
34.000
Net current assets 18.600
Total assets less current liabilities 144.600
Capital and reserves 100.000
Share capital 44.600
Profit and loss account 144.600
Required: Prepare the following budgets for the six months ended 31 December 19X2. a)Cash budget,b)budgeted profit and loss account c) budgeted balance sheet.
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Internal Control Anti Fraud Program Design For The Small Business
Authors: Steve Dawson
1st Edition
1119065070, 978-1119065074
