For each transaction, decide whether it should be included in the cash budget for the business; prepare a cash budget for the three months ending 31 March, 2022.  1. Anton invested £10,000 cash in the business on 1 January, 2022. 2. Anton plans to make drawings of £800 per month for each personal expenditure. 3. Anton purchases a computer for his personal use at a cost of £499 in January. 4. Anton also purchased a computer in January for business purposes at a cost of £720 cash. 5. He plans to buy a motor vehicle for £3,200 cash on 1 March, for business purposes. 6. Sales estimates are as following: January = £4,200 February = £ 3,200 March = £2,950 7. Sales are made 30% cash and 70% on one months’ credit. 8. Purchases will be made for cash as follows: January = £ 2,800 February = £1,500 March = £1750 9. Other expenses are estimated as follows: • Electricity £285 payable at the end of the quarter. • Telephone costs of £120 per month, payable at the end of each month by cash. • Fuel cost for motor vehicle estimated to be £65 per month, payable in the same month.   provide all the workings, should be same as the attached template  (image)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

For each transaction, decide whether it should be included in the cash budget for the business;
prepare a cash budget for the three months ending 31 March, 2022. 


1. Anton invested £10,000 cash in the business on 1 January, 2022.
2. Anton plans to make drawings of £800 per month for each personal expenditure.
3. Anton purchases a computer for his personal use at a cost of £499 in January.
4. Anton also purchased a computer in January for business purposes at a cost of £720 cash.
5. He plans to buy a motor vehicle for £3,200 cash on 1 March, for business purposes.
6. Sales estimates are as following:
January = £4,200
February = £ 3,200
March = £2,950
7. Sales are made 30% cash and 70% on one months’ credit.
8. Purchases will be made for cash as follows:
January = £ 2,800
February = £1,500
March = £1750
9. Other expenses are estimated as follows:
• Electricity £285 payable at the end of the quarter.
• Telephone costs of £120 per month, payable at the end of each month by cash.
• Fuel cost for motor vehicle estimated to be £65 per month, payable in the same
month.

 

provide all the workings, should be same as the attached template  (image)

Jan
Feb
March
£
£
Receipts
Capital
Cash receipts from sales
Provide workings
Receipts from credit sales
Provide workings
Total Cash receipts (A)
Payments
Write all the payments here one by
one
Total Cash payments (B)
Net receipts (A- B)
Balance brought forward
Balance carried forward
Transcribed Image Text:Jan Feb March £ £ Receipts Capital Cash receipts from sales Provide workings Receipts from credit sales Provide workings Total Cash receipts (A) Payments Write all the payments here one by one Total Cash payments (B) Net receipts (A- B) Balance brought forward Balance carried forward
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education