Chapter 22, Problem 2APSA

To determine

22-2A Part 1

Note: Both the parts of the question are related with each other. Solution of Part 1 is used as a base for solving Part 2 of the question.

Introduction:

As the name suggest, Cash receipt budget represents the budgeted cash receipts (income) from whatever source i.e. whether it’s operational or non- operational. It can be from sales or other receipts.

To Determine:

Preparation of cash receipt budget for July, august and September.

To determine

22-2A Part 2

Introduction:

Cash budget represents the budgeted cash inflow as well as outflow from whatever source i.e. whether it’s operational or non- operational. Inflow can be from sales or other receipts. Outflow can be in the form of purchase cost or other cost. It is different from cash receipts budget in the form that earlier one contains only receipt. On the other hand, later one contains inflow as well as outflow. It represents the net of inflow and outflow of cash.

To Determine:

Preparation of cash budget for July, august and September.