Prepare a cash budget, Financial Accounting

Assignment Help:

Question:

The accountant of a company is preparing the cash budget for the first six months of 2011 and obtains the following information:

Sales on credit, variable costs and wages are budgeted as follows (the November and December of the previous year being the actual figures for those months):

1705_Prepare a cash budget.png

Fixed expenses amount to Rs 1,500 net per month and the half year's preference dividend of Rs 1,400 net is due on June 30. Corporation tax amounting to Rs 8,000 is payable in January and progress payment under a building contract are due as follows:

March 31st Rs 5,000 and May 31st Rs 6,000.

The terms on which goods are sold are net cash in the month following delivery. Variable costs are payable in the month following that in which they are incurred and are as to 50% subject to 2½% discount, and the balance net. It is found that 75% of debtors to whom sales are made pay within the period of credit and the remainder do not pay until the following month. The company pays all its accounts promptly.

Prepare a cash budget.


Related Discussions:- Prepare a cash budget

Explain the accounting treatment , This is a research case.  You must compl...

This is a research case.  You must complete this assignment INDIVIDUALLY.  This means no help from other students.  You may consult Dr. Eldridge while you are working on this case.

Defence of trustee-breach of trust-trusts laws, Defence of trustee   1) He...

Defence of trustee   1) He may be relieved from liability if, in the opinion of the court, he acted honestly and reasonably and ought to be excused; 2) He may also be released

Content of accounts-trusts accounts, Content of accounts Periodical acc...

Content of accounts Periodical accounts should normally consist of:         1.    Balance sheet of the whole trust;         2.    Capital account;         3.    Income account

Determine annual effective cost, Q. Determine Annual effective cost? (...

Q. Determine Annual effective cost? (i) Payables policy One month cost of taking extended trade credit = 1.5/98.5 = 1.52% Annual effective cost = 1.015212-1 = 19.8%

Financial accounts, The following items are found in the trial balance of M...

The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. 10 marks Summer 2013 Sundry Debtors Rs.160000 Bad Debts written off Rs 9000 Dis

Condition of joint return, Surviving Spouse - This is a person whose wife o...

Surviving Spouse - This is a person whose wife or husband died during tax year. A surviving spouse can file a JOINT RETURN for the year in which death occurred. Additionally a join

Prepare the journal entries to record non-monetary exchange, Moore Corporat...

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

Peer review, Peer Review - Process by which an accounting firm's practice i...

Peer Review - Process by which an accounting firm's practice is evaluated for compliance with professional standards. Objective is achieved through the performance of an independen

TRADE AND PROFIT AND LOSS ACCOUNT, The following figures are taking from th...

The following figures are taking from the book of Sheen Compnay limited as on december 31,2009 DEBIT SIDE : opening stock Rs 75000 purchases 245000 wages 30000 c

Reasons that influence firm''s degree of transaction exposure, Define reaso...

Define reasons that influence a firm's degree of transaction exposure? What reasons influence a firm's degree of ‘transaction exposure' in a certain currency? For each reason d

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