Professional Documents
Culture Documents
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
-
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
April
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.
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
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
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