21.32 Exercise: preparation of cash budget, forecast profit and loss account and balanceCourante Lid.'s balance sheet at 31 December 19-1 is as follows:21 Budgets and budgetary controlcheet for a limited companyFlaed assetsCostFahold preminesPlant and machineryDepnNet20,00015,00035,0004,0009,00016,0006,00022,000Carrent assetsShockTrade debtonsCash at bankAdministration expenses prepaid13,00012,00017,0009,5002,40040,900Jete Carrent liabilitiesTrade creditorsSelling and distribution expenses accrued9,0001,20010,20030,70052,70010,00042,700Jess Long berm liabilities: 12 per cent debenturesShare capital and reservesOrdinary shares of ElGeneral reserveRetained profit25,00015,0002.700Sales and purchases for the four months to 30 April 19-2 are as follows:42,700JanFebMarAprSalesPurchases25,00010,000Itis expected that 40 per cent of sales will be for cash; one month's credit is allowed to debtors.28,0008,00030,00012,00033,00015,000Ope month's credit is allowed on all purchases.Additional information:1 Selling and distribution expenses: 10 per cent of sales, payable in following month.2 Administration expenses: 53,000 per month. Prepaid administration expenses at 30 April 19-2 E1,300.3. Stock at 30 April 19-2: £9,000.4 Additional machinery will be purchased on 1 March 19-2 at a cost of £24,000S. Provision is made yearly for depreciation as follows: freehold premises: 3 per cent on cost;plant and machinery 20 per cent on cost. 50 per cent of all depreciation is charged to sellingand distribution expenses and the balance to administration expenses.6 Debenture interest is payable on 30 June and 31 December.7. Payment of an interim dividend of 10p a share will be made in April 19-2.S It is planned to transfer a further £10,000 to general reserve at 30 April 19-2.Required(a) A cash budget for Courante Ltd. for the four months to 30 April 19-2.6) A forecast profit and loss account for the four months to 30 April 19-2 and a forecast balancesheet as at that date.

a) Cash Budget for courante ltd for the four months to 30 April19-2. Particulars January…

Required (a) A cash budget for Courante Ltd. for the four months to 30 April 19-2. 16) A forecast profit and loss account for the four months to 30 April 19-2 and a forecast balance sheet as at that date.

Required (a) A cash budget for Courante Ltd. for the four months to 30 April 19-2. 16) A forecast profit and loss account for the four months to 30 April 19-2 and a forecast balance sheet as at that date.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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