Extracts from the budget of H Ltd, a retailer of office furniture, for the six months to 31 December show the following information: $ 55,800 Sales Purchases 38,000 Closing stock finished goods Opening stock finished goods Opening debtors Opening creditors 7,500 5,500 8,500 6,500 Debtors and creditors are expected to rise by 10 and 5 per cent, respectively, by the end of the budget period.
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.
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