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.
For each transaction, decide whether it should be included in the
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.
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