Budgeted Balance sheet

Particulars

April

Cash
Inventory
Accounts Receivable
Net Furniture and fixtures
Total assets
Accounts Payable
Borrowings
Owners' equity
Total liabilities and owners equity
Diff

May

June

July

August

5,800
86,800
73,800
33,600
200,000

5,000
49,600
82,200
33,100
169,900

5,716
49,600
72,600
32,600
160,516

5,907
37,200
72,600
32,100
147,807

97,800
102,200
200,000
-

49,600
10,083
110,217
169,900
-

49,600
1,083
109,833
160,516
-

37,200
1,083
109,524
147,807
-

Budgeted Income statement

Sales

April
May
June
July
August
60,000
70,000
140,000
80,000
80,000

Variable expenses
Cost of goods sold
Salaries @ 20%
other var exp @ 4%
Fixed expenses
Dep
Interest
Net Income

Budgeted Cash Statement

Particulars
Op bal
Receipts:
Cash sales
Accounts receivables
Accounts receivables
Borrowings

April

Reasons for Bank Loan

86,800 - 49,600 - 49,600

28,000 - 16,000 - 16,000
5,600 3,200 3,200

11,000
500
83
8,017

May

28,000
89,600
14,000
10,000

- 11,000 - 11,000
500 500
84 9
384 309

June
July
August
5,800
5,000
5,716

Payments:
Accounts payable - Furniture
Purchases of goods
Expenses
Loan repayment
Closing bal

16,000
51,200
22,400

16,000
51,200
12,800

11,000
86,800 - 49,600 - 49,600
44,600 - 30,200 - 30,200
- 9,084 9
5,000

5,716

5,907

a)
Payment of $11000 for furniture and fixtures in the month of June is non-current and non regular
payment and moreover accounts payable also increased in the same month due to purchase of
additional inventory in previous month in order to meet the increased sales demandfor the month
of June
b)
Increased collections from accounts receivable in the month of July was the main source of cash
for the repayment of loan.

Workings for solution

Debtors
Op bal
Add
Less
Cl bal

73,800
82,200
72,600
112,000
64,000
64,000
- 103,600 - 73,600 - 64,000
82,200
72,600
72,600

Accounts payable
Op bal
Add
Less
Less
Cl bal

Inventory
Op bal
Add
Less sales @ cost 62%
Cl bal

Consumption of goods
Opening stock
Material purchased
Less: Closing bal
Consumption of goods

Loan account
Op bal
Borrowings
Interest accrued
Less: Repayments
Cl Bal

97,800
49,600
-

49,600
49,600

49,600
37,200

86,800 - 49,600 - 49,600

11,000
49,600
49,600
37,200

86,800
49,600
49,600
49,600
49,600
37,200
86,800 - 49,600 - 49,600
49,600
49,600
37,200

86,800
49,600
49,600
49,600
49,600
37,200
49,600 - 49,600 - 37,200
86,800
49,600
49,600

10,083
10,000
83
84
- 9,084 10,083
1,083

1,083
9
9
1,083

Particulars
1 Sales for the month
Debtors
Cash
To Sales
2 Expenses payments
Fixed expenses
Salaries and others
Variable exp
To Cash
3 Purchase of goods
Purchases
To accounts payable
4 Payments to accounts payable
Accounts payable
To cash
5 Receipt of cash from debtors
Cash (same month)
Cash (Previous month)
To Debtors

June
Net

August
Net

June

112,000 64,000
28,000 16,000
- 140,000 - 80,000 11,000 11,000
28,000 16,000
5,600
3,200
- 44,600 - 30,200 49,600 49,600
- 49,600 - 49,600 -

64,000
16,000
80,000
11,000
16,000
3,200
30,200
37,200
37,200

86,800 49,600
- 86,800 - 49,600 89,600 51,200
14,000 22,400
- 103,600 - 73,600 -

49,600
49,600
51,200
12,800
64,000

6 Depreciation
Dep
To furniture

7 Creditor - furniture
To cash

8 Cash
To Borrowings

9 Interest on loan
loan account

10 Loan repaid
loan account
To cash

July
Net

Dr
112,000
28,000

Cr

140,000

11,000
28,000
5,600
44,600

49,600
49,600

86,800
86,800

89,600
14,000
103,600

500
500 11,000
11,000
10,000
10,000

500
500 -

500
500
-

83
83 -

84
84 -

9
9
-

83

9,084
- - 9,084 -

9
9

500
500
11,000
11,000
10,000
10,000

83

(112,000) (64,000)

(64,000)

334,183
- 112,000

446,183

July

August

Dr
64,000
16,000

Cr

Dr
64,000
16,000

80,000

11,000
16,000
3,200

80,000

11,000
16,000
3,200
30,200

49,600

11000
20% of sal
4% of sal
30,200

37,200
49,600

49,600

62% of sales
37,200

49,600
49,600

51,200
22,400

49,600

51,200
12,800
73,600

500

64,000

500
500

84
-

Cr

84

9,084

500

9
-

9
9,084

228,668
- 64,000

292,668

197,518
- 64,000

261,518

June
Op bal
Net cash before repayment
Min bal to be maintained
Cash available for disbursement
Borrowings

July

5,800
10,800
5,000 10,000
10,000

Loan amt
Interest @ 10
Total

10,000
83
10,083

Repayment

- - 10,083

Cl bal as on month end

August
5,000
9,800
5,000 9,800
-

10,083
84
10,167
84 9,000
1,083

5,716
200
5,000
916
1,083
9
1,092
9
1,083

5,907

5,000
-

5,000
-

5,000
5,000
-

10,083
84
10,167

10,167
85
10,252

10,167

10,252

5,000