Prepare a worksheet as of December 31, 2020
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.
![Trial Balance
Mars Trading Company
31/12/2020
Credit ($)
Debit ($)
17.500
Account
Cash
Account Receivable
21.000
55.000
Inventory
Prepaid Insurance
Equipment
Accumulated Depreciation Equipment
Account Payable
Share Capital Ordinary
Retained Earnings
2.500
45.000
7.500
15.000
55.000
25.000
Dividens
11.000
Sales Revenue
Sales Return and allowances
Sales Discounts
Cost of Goods Sols
Freight out
Advertising Expense
Salaries and Wages Expense
Utility Expense
Total
390.000
5.000
2.000
285.000
4.000
12.000
25.000
7.500
492.500
492.500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faad1161a-88d3-4b63-b5c2-f92f56f25502%2Fb9134026-e041-4df0-b476-52a094e602f4%2Fvb02zsr_processed.png&w=3840&q=75)
![The following is the transaction of the trading company "Mars" in
December 2020
• On 2 December 2020 the company purchased $ 4,500 of merchandise on
credit 2/10.
• On December 5, 2020, the company pays cash delivery fees on the order
dated December 2, 2020 for $ 200.
• On December 6, 2020, the company sold merchandise online a 2/10
credit of $ 6,000.
• On December 7, 2020, the company returned the purchase of goods done
on December 2, 2020 for $ 500.
• On 8 December 2020 the company purchased $ 3,500 of merchandise in
cash.
• On 12 December 2020 the company paid the invoice for the purchase of
goods which are due with a 2% discount for payment in time 10 days.
• On December 13, 2020 the company received sales returns from
consumers for $ 500.
• On December 16, 2020 the company received payment for merchandise
which is sold on credit on December 6, 2020 by giving 2% discount on sales
because it is paid on 10 days.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faad1161a-88d3-4b63-b5c2-f92f56f25502%2Fb9134026-e041-4df0-b476-52a094e602f4%2Ftcuag1_processed.png&w=3840&q=75)
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