Prepare a cash budget, Financial Accounting

Assignment Help:

The following information for the six months ended 31 December 2009 relates to the business of Mr N Morris:

a) Opening cash (including bank) balance Rs 1,200

b) Production in units:

2009                                                                             2010
Apr    May   June   July   Aug   Sept   Oct   Nov   Dec   Jan   Feb
240   270   300    320    350   370    380  340   310   260  250

c) Raw materials used in production cost Rs 5 per unit. Of this 80 percent is paid in the month of production and 20 percent in the month after production.

d) Direct labour cost of Rs 8 per unit are payable in the month of production.

e) Variable expenses are Rs 2 per unit, payable one half in the same month as production and one half in the month following production.

f) Sales at Rs 20 per unit:

2009

Mar   Apr   May   June   July   Aug    Sept   Oct   Nov   Dec
260   200  320   290    400   300    350    400   390   400

Debtors pay their accounts three months after that in which sales are made.

g) Fixed expenses of Rs 400 per month payable each month

h) Machinery costing Rs 2000 to be paid in October 2009.

i) Will receive a legacy of Rs 2500 in December 2009.

j) Drawings to be Rs 300 per month.

Required:

(a) Prepare a cash budget for each of the six months to 31 December 2009, showing the cash balance at the end of each month.

(b) Describe the objectives of budgetary planning and control systems.

(c) Briefly describe the importance of preparing a cash budget.


Related Discussions:- Prepare a cash budget

Premium coupons , premium coupons that already have been expired should be ...

premium coupons that already have been expired should be or shouldn''t be estimated as liability?

Determine estimated cost, XYZ Company is a large manufacturer of auto parts...

XYZ Company is a large manufacturer of auto parts for the auto manufacturers and parts distributors. XYZ has plants throughout the world, but most are located in North America. XYZ

Efficiency ratios, Efficiency Ratios - These ratios include Receivables T...

Efficiency Ratios - These ratios include Receivables Turnover, Inventory Turnover, Asset Turnover and Net Working Capital Turnover ratios. Efficiency ratios demonstrate the utili

State the role of accounting information, State the role of Accounting info...

State the role of Accounting information Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the busines

Prepare partial income statement through fifo and lifo , Prepare Partial In...

Prepare Partial Income Statement through FIFO, And LIFO Methods The records of XYZ Restaurant Supply include the following accounts for cases of coffee cups at December 31 of t

Prepare a statement to show the total production overheads, Aristo Ltd uses...

Aristo Ltd uses a system of absorption costing. The product passes through a machining department and an assembly department before it is completed. The assembly department is labo

Mortgage, Ask questiJohn’s away at the moment, and his email provider has a...

Ask questiJohn’s away at the moment, and his email provider has a size limit on the data that can be sent via email. What is a potential solution for John, and name a provider that

Calculate the annual percentage rate, Your mother-in-law is fretting about ...

Your mother-in-law is fretting about paying her mortgage. She refinanced her mortgage loan a while back, and now is thinking about refinancing again. You are going to help her eval

Assignment, Can you do the attacched quections by Monday?

Can you do the attacched quections by Monday?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd