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

A gift of residue-will-executorship law and accounts, A gift of residue ...

A gift of residue Where property is not given by a specific legacy nor by a general legacy, it makes up the residue of the testator's estate.  If the testator fails to make a g

Official development assistance , 1. To qualify as official development ass...

1. To qualify as official development assistance (ODA), development loans must have a grant element of at least 25 percent, calculated using a stated annual interest rate of 10 per

Business mathamatics, im doing compound interest my calculator doest have a...

im doing compound interest my calculator doest have anxy butyx cant do nothing with the ten being the power of .9

Investments under the trustee act-trust laws and accounts, Investments unde...

Investments under the Trustee Act The act defines the categories of investment as follows:         1. Fixed interest securities are: Securities which under their te

Apportionment-executorship laws and accounts, APPORTIONMENT (a) T he...

APPORTIONMENT (a) T he purpose of the apportionment rules The purpose of the various rules of apportionment is to provide a fair and reasonable basis for dividing certain

Corporate accounting system, 1. This assignment is to be submitted as an in...

1. This assignment is to be submitted as an individual assignment.  2. Marks will be deducted for poor quality presentation. For guidance on the requirements for the presentatio

one parameter exponential smoothing model, The following table represents ...

The following table represents the demand for a product for the years 1990 to 2007: a.    Develop a linear trend line and use it to predict the quantity demanded for 2008,

What you understand by the term gender budgeting, Question 1: (a) "MT...

Question 1: (a) "MTEF is about resource control, resource allocation and resource utilization." You are required to identify and discuss the different stages of MTEF. (N

Rental loss, Jane makes a living renting expensive state of the art surveil...

Jane makes a living renting expensive state of the art surveillance equipment to detectives and nervous spouses. Her average rental period is 27 days. The rental price includes all

Calculate breakeven in sales units and in sales value, Calculate breakeven ...

Calculate breakeven in sales units and in sales value: Tycoon makes and sells 600 toy cars per month.  Each toy car is sold for RM40 each.  Tycoon is currently producing at 50

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