7. From the following forecasts of income and expenditure, prepare a cash budget for threemonths January 2015 to March 2015.(Amount in Rs.)Manufacturing AdministrativeSalesPurchaseMonths|(Credit) (Credit)Wagesexpenses1150expenses1060Nov. 201430000150003000Dec. 20143500020000320010401100115012201225Jan. 201525000150002500990Feb. 2015300002000030001050Mar. 201535000225002500024001100Арг. 201540000260012001180Additional information in follows:(a) The customers are allowed a credit period of two months.(b) A dividend of Rs 10000 in payable March.(c) The creditors are allowing a credit of I month(d) Wages are paid on the Ist of the next months.(e) Lag in payment of other expenses is two months.(f) Balance of cash in hand on 1st Jan. 2015 is Rs. 15000.*****

Cash Budget:-It is a budget or planning of expected cash inflow or outflow from revenue collection…

7. From the following forecasts of income and expenditure, prepare months January 2015 to March 2015. cash budget for three (Amount in Rs.) Administrative Sales Purchase Manufacturing Months Wages (Credit) (Credit) expenses 1150 expenses 1060 Nov. 2014 30000 15000 3000 Dec. 2014 35000 20000 3200 1225 1040 Jan. 2015 25000 15000 2500 990 1100 Feb. 2015 30000 20000 3000 1050 1150 Mar. 2015 35000 22500 2400 1100 1220 Apг. 2015 40000 25000 2600 1200 1180 Additional information in follows: (a) The customers are allowed a credit period of two months. (b) A dividend of Rs 10000 in payable March. (c) The creditors are allowing a credit of I month. (d) Wages are paid on the 1st of the next months. (e) Lag in payment of other expenses is two months. (f) Balance of cash in hand on 1st Jan. 2015 is Rs. 15000. *****

7. From the following forecasts of income and expenditure, prepare months January 2015 to March 2015. cash budget for three (Amount in Rs.) Administrative Sales Purchase Manufacturing Months Wages (Credit) (Credit) expenses 1150 expenses 1060 Nov. 2014 30000 15000 3000 Dec. 2014 35000 20000 3200 1225 1040 Jan. 2015 25000 15000 2500 990 1100 Feb. 2015 30000 20000 3000 1050 1150 Mar. 2015 35000 22500 2400 1100 1220 Apг. 2015 40000 25000 2600 1200 1180 Additional information in follows: (a) The customers are allowed a credit period of two months. (b) A dividend of Rs 10000 in payable March. (c) The creditors are allowing a credit of I month. (d) Wages are paid on the 1st of the next months. (e) Lag in payment of other expenses is two months. (f) Balance of cash in hand on 1st Jan. 2015 is Rs. 15000. *****

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

7. From the following forecasts of income and expenditure, prepare a cash budget for three
months January 2015 to March 2015.
(Amount in Rs.)
Manufacturing Administrative
Sales
Purchase
Months
|(Credit) (Credit)
Wages
expenses
1150
expenses
1060
Nov. 2014
30000
15000
3000
Dec. 2014
35000
20000
3200
1040
1100
1150
1220
1225
Jan. 2015
25000
15000
2500
990
Feb. 2015
30000
20000
3000
1050
Mar. 2015
35000
22500
25000
2400
1100
Арг. 2015
40000
2600
1200
1180
Additional information in follows:
(a) The customers are allowed a credit period of two months.
(b) A dividend of Rs 10000 in payable March.
(c) The creditors are allowing a credit of I month
(d) Wages are paid on the Ist of the next months.
(e) Lag in payment of other expenses is two months.
(f) Balance of cash in hand on 1st Jan. 2015 is Rs. 15000.
*****

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