User Account

All Pages

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

Calculate the claim under insurance policy, Calculate the claim under insur...

Calculate the claim under insurance policy: 1) What do policy limits of 200/300/100 on an automobile insurance policy mean?Your automobile insurance policy contains policy lim

Calculate return on assets, Select two of the following firms: Dole Foods,...

Select two of the following firms: Dole Foods, Campbell Soup, Hershey and Dr. Pepper Snapple. Use the 10-K, annual report and other information to answer the following questions.

Give reasons why both options should be used, Apple Corporation has been he...

Apple Corporation has been hearing complaints from some shareholders about returning some of the $150 billion in cash that the corporation has. Some shareholders think a large divi

Estimate the cost, Olivia has received a $15 gift certificate that is redee...

Olivia has received a $15 gift certificate that is redeemable only for roasted peanuts. Bags of roasted peanuts come in two sizes, regular and jumbo. A regular bag contains 30 pean

Calculate the intrest rate and discount rate, You are considering whether o...

You are considering whether or not to go to graduate school. Well... there are many things to consider, of course, such as the type of job you would thus get, the opportunity to li

Cum interest accounting, what is cum interest

what is cum interest

Concepts and conventions, explain accounting concepts and conventions

explain accounting concepts and conventions

Concepts in accounting, Mr. Inherits 30000. Decides to open a salon jj salo...

Mr. Inherits 30000. Decides to open a salon jj salon. On 1/4/2016 commits 10000 to the business Opens an a/c in the bank What will be the money under capital in his books on 1/4/10

Explain final location survey, Q. Explain Final Location Survey? A fina...

Q. Explain Final Location Survey? A final Location Survey is under taken on the completion of traffic survey to select the final rout of the line to be constructed, taking into

Asset Allocation, In January 2013, Mitzu Co. pays $2,600,000 for a tract of...

In January 2013, Mitzu Co. pays $2,600,000 for a tract of land with two buildings on it. It plans to demolish Building I and build a new store in its place. Building 2 will be a co

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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