Q1: VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available: Creditors give one month credit Salaries are paid in the current month Fixed costs are paid in one month arrears and include a charge for depreciation Rs.10,000 per month Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents bad debts. Month Cash Sales Credit Sales Purchases Salaries Fixed Overheads July 148,000 110,000 18,000 60,000 August 164,000 122,400 18,000 60,000 September 40,000 160,000
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.
Q1: VTV Company has a cash balance of Rs.54,000 at the beginning of September and the following information is available:
- Creditors give one month credit
- Salaries are paid in the current month
- Fixed costs are paid in one month arrears and include a charge for
depreciation Rs.10,000 per month - Credit sales are settled as follows: 40% in the month of sales, 45% in the next month and 12% in the following month. The balance represents
bad debts.
|
Month |
Cash Sales |
Credit Sales |
Purchases |
Salaries |
Fixed |
|
July |
|
148,000 |
110,000 |
18,000 |
60,000 |
|
August |
|
164,000 |
122,400 |
18,000 |
60,000 |
|
September |
40,000 |
160,000 |
120,000 |
19,000 |
60,000 |
|
October |
44,000 |
180,000 |
138,000 |
19,000 |
64,000 |
|
November |
50,000 |
200,000 |
150,000 |
20,000 |
64,000 |
Note: No need to enter currency symbol and comma just type numbers (for example: 10000)
L: Calculate Total Receipt for the month of November.
M: Calculate Total Payment for the month of september.
N: Calculate Total Payment for the month of October.
O: Calculate Total Payment for the month of November.
P: Calculate Closing Cash Balance for the month of se
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