Hii,
can any one help me in preparing cash budget for a particular period and tell me the important points which are considerd while preparing it. There are some adjustment the treatement of those i want to know:-
1. What is treatment of expenses are paid fortnightly with a time lag of 15 days.
2. The company maintain a minimum cash balance of Rs.....The cash bal. in excess of Rs...... is invested in govt.securities in multiple of Rs.1000(Suppose)
3. Short fall in cash bal. are made good by borrowing from banks/Financial inst.
4. The interest recd.as well as paid is to be ignored.
Please tell us about all these adjustments with an suitable example.
I am very thankful to him/her for doing so on urgent basis.
From India, New Delhi
can any one help me in preparing cash budget for a particular period and tell me the important points which are considerd while preparing it. There are some adjustment the treatement of those i want to know:-
1. What is treatment of expenses are paid fortnightly with a time lag of 15 days.
2. The company maintain a minimum cash balance of Rs.....The cash bal. in excess of Rs...... is invested in govt.securities in multiple of Rs.1000(Suppose)
3. Short fall in cash bal. are made good by borrowing from banks/Financial inst.
4. The interest recd.as well as paid is to be ignored.
Please tell us about all these adjustments with an suitable example.
I am very thankful to him/her for doing so on urgent basis.
From India, New Delhi
Dear all, No reply I have received till, no one answer my questions and give a solution of these. I am surprise guyssssssssssssssssssss
From India, New Delhi
From India, New Delhi
cash Budget reflects only actual cash transactions, therefore you will budget the expenses only when it actually becomes due and paid, so do not treat the expense as one in the cash budget unless it is to be paid.
Show the minimum balance of cash as a requirement and when you find that there is excess cash show the amounts invested as cash payments (Note that payments need not necessarily be expenses they can also be investments)
When you receive cash frmo bank etc. show these as receipts into your cash balance.
Hope I have been of help
From India, Madras
4Show the minimum balance of cash as a requirement and when you find that there is excess cash show the amounts invested as cash payments (Note that payments need not necessarily be expenses they can also be investments)
When you receive cash frmo bank etc. show these as receipts into your cash balance.
Hope I have been of help
From India, Madras
Dear Ratan, thanks for this information and i am very thankful if you illustrate this with a suitable example. I am waiting your respose.thanksssssssssssss
From India, New Delhi
From India, New Delhi
Cash budget is prepared on transactions that will involve only cash only, e.g. cash purchases, and cash payments and cash receipts.
only cash that is projected to be received/paid/invested in that particular accounting month(s) is recorded as such in the cash budget. expenses paid fortnightly with a time lag of 15 days should be recorded as such as and when the projected time of expense
only cash that is projected to be received/paid/invested in that particular accounting month(s) is recorded as such in the cash budget. expenses paid fortnightly with a time lag of 15 days should be recorded as such as and when the projected time of expense
1. What is treatment of expenses are paid fortnightly with a time lag of 15 days.
If you are rpeparing a cash budget as of 31st of this month and expect a cash payment on 2nd for Rs 10000, show this as an expense.
2. The company maintain a minimum cash balance of Rs.....The cash bal. in excess of Rs...... is invested in govt.securities in multiple of Rs.1000(Suppose)
Cash balance is Rs 50000, the required cash balance is only Rs 10000, the excess which is Rs 40000 is invested in Govt security.
3. Short fall in cash bal. are made good by borrowing from banks/Financial inst.
Reqd cash balance is Rs 10000 the available cahs balance is Rs 1000 only the balance of Rs 9000 is boprrowed from bank.
4. The interest recd.as well as paid is to be ignored.
IGNORED
From India, Madras
If you are rpeparing a cash budget as of 31st of this month and expect a cash payment on 2nd for Rs 10000, show this as an expense.
2. The company maintain a minimum cash balance of Rs.....The cash bal. in excess of Rs...... is invested in govt.securities in multiple of Rs.1000(Suppose)
Cash balance is Rs 50000, the required cash balance is only Rs 10000, the excess which is Rs 40000 is invested in Govt security.
3. Short fall in cash bal. are made good by borrowing from banks/Financial inst.
Reqd cash balance is Rs 10000 the available cahs balance is Rs 1000 only the balance of Rs 9000 is boprrowed from bank.
4. The interest recd.as well as paid is to be ignored.
IGNORED
From India, Madras
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