Micro-business Bookkeeping & The Cash Budget

Introduction 3 lectures 08:50 Course Objectives Course Tutor The Accounting System Introduction 3 lectures 08:50 Course Objectives Course Tutor The Accounting System Course Objectives Course Objectives Course Objectives Course Objectives Course Tutor Course Tutor Course Tutor Course Tutor The Accounting System The Accounting System The Accounting System The Accounting System The Ledgers 3 lectures 10:15 The Cash Ledger Entering Data into the Cash Ledger The Sales and Purchases Ledgers The Ledgers 3 lectures 10:15 The Cash Ledger Entering Data into the Cash Ledger The Sales and Purchases Ledgers The Cash Ledger The Cash Ledger The Cash Ledger The Cash Ledger Entering Data into the Cash Ledger Entering Data into the Cash Ledger Entering Data into the Cash Ledger Entering Data into the Cash Ledger The Sales and Purchases Ledgers The Sales and Purchases Ledgers The Sales and Purchases Ledgers The Sales and Purchases Ledgers Accounts Receivable and Payable 3 lectures 15:24 Accounts Receivable Accounts Payable Working Capital Accounts Receivable and Payable 3 lectures 15:24 Accounts Receivable Accounts Payable Working Capital Accounts Receivable Accounts Receivable Accounts Receivable Accounts Receivable Accounts Payable Accounts Payable Accounts Payable Accounts Payable Working Capital Working Capital Working Capital Working Capital Budget Control 4 lectures 10:32 The Cash Budget The Budget Commitee Computing a Cash Budget Compute a Cash Budget for a Small Business Compute a cash budget from the information given. 6 months of trading for a small business start-up65 000 £1 ordinary shares were issued for cash on 1st of January Sales are budgeted at £25,000 in January, £50,000 in February, £80,000 in March, and then rising £20,000 by each month. Of these sales, cash sales were expected to be £20,000 in January, £40,000 in February and £50,000 thereafter. 70% of credit customers were expected to pay after 1 month for a cash discount of 5%. The remaining customers will pay after 3 months, 3% of them are expected to be bad debts. A long term loan is to be raised of £60,000 on March 1st. Purchases of materials are planned in January of £20,000, £40,000 in February, £60,000 in March, and increasing by £5000 thereafter. Suppliers have granted two months’ credit. Wages and salaries will cost £15,000 from January to April and rise to £20,000 thereafter. Tax deductions of 20% of labour cost will be paid to the Inland Revenue one month after the deduction. Rent costs £15,000 per annum to be paid quarterly in advance Insurance for the year of £8 000 is to be paid in January Rates of £25,000 per annum are to be paid half-yearly in March and September A special advertising promotion is budgeted for January of £30,000 with costs dropping to £10,000 from February to April, and dropping to £5,000 from May to June. Paid one month in arrears. A vehicle costing £15,000 will be bought. £10,000 will be paid as deposit in March with two further payments of £2,500 to be made in April and May. Premises will be purchased in February for £70,000. An overdraft has been utilised with 12% interest. Compute the cash flows first and then complete the cash budget. Budget Control. 4 lectures 10:32 The Cash Budget The Budget Commitee Computing a Cash Budget Compute a Cash Budget for a Small Business Compute a cash budget from the information given. 6 months of trading for a small business start-up65 000 £1 ordinary shares were issued for cash on 1st of January Sales are budgeted at £25,000 in January, £50,000 in February, £80,000 in March, and then rising £20,000 by each month. Of these sales, cash sales were expected to be £20,000 in January, £40,000 in February and £50,000 thereafter. 70% of credit customers were expected to pay after 1 month for a cash discount of 5%. The remaining customers will pay after 3 months, 3% of them are expected to be bad debts. A long term loan is to be raised of £60,000 on March 1st. Purchases of materials are planned in January of £20,000, £40,000 in February, £60,000 in March, and increasing by £5000 thereafter. Suppliers have granted two months’ credit. Wages and salaries will cost £15,000 from January to April and rise to £20,000 thereafter. Tax deductions of 20% of labour cost will be paid to the Inland Revenue one month after the deduction. Rent costs £15,000 per annum to be paid quarterly in advance Insurance for the year of £8 000 is to be paid in January Rates of £25,000 per annum are to be paid half-yearly in March and September A special advertising promotion is budgeted for January of £30,000 with costs dropping to £10,000 from February to April, and dropping to £5,000 from May to June. Paid one month in arrears. A vehicle costing £15,000 will be bought. £10,000 will be paid as deposit in March with two further payments of £2,500 to be made in April and May. Premises will be purchased in February for £70,000. An overdraft has been utilised with 12% interest. Compute the cash flows first and then complete the cash budget. The Cash Budget The Cash Budget The Cash Budget The Cash Budget The Budget Commitee The Budget Commitee The Budget Commitee The Budget Commitee Computing a Cash Budget Computing a Cash Budget Computing a Cash Budget Computing a Cash Budget Compute a Cash Budget for a Small Business Compute a cash budget from the information given. 6 months of trading for a small business start-up65 000 £1 ordinary shares were issued for cash on 1st of January Sales are budgeted at £25,000 in January, £50,000 in February, £80,000 in March, and then rising £20,000 by each month. Of these sales, cash sales were expected to be £20,000 in January, £40,000 in February and £50,000 thereafter. 70% of credit customers were expected to pay after 1 month for a cash discount of 5%. The remaining customers will pay after 3 months, 3% of them are expected to be bad debts. A long term loan is to be raised of £60,000 on March 1st. Purchases of materials are planned in January of £20,000, £40,000 in February, £60,000 in March, and increasing by £5000 thereafter. Suppliers have granted two months’ credit. Wages and salaries will cost £15,000 from January to April and rise to £20,000 thereafter. Tax deductions of 20% of labour cost will be paid to the Inland Revenue one month after the deduction. Rent costs £15,000 per annum to be paid quarterly in advance Insurance for the year of £8 000 is to be paid in January Rates of £25,000 per annum are to be paid half-yearly in March and September A special advertising promotion is budgeted for January of £30,000 with costs dropping to £10,000 from February to April, and dropping to £5,000 from May to June. Paid one month in arrears. A vehicle costing £15,000 will be bought. £10,000 will be paid as deposit in March with two further payments of £2,500 to be made in April and May. Premises will be purchased in February for £70,000. An overdraft has been utilised with 12% interest. Compute the cash flows first and then complete the cash budget. Compute a Cash Budget for a Small Business Compute a cash budget from the information given. 6 months of trading for a small business start-up65 000 £1 ordinary shares were issued for cash on 1st of January Sales are budgeted at £25,000 in January, £50,000 in February, £80,000 in March, and then rising £20,000 by each month. Of these sales, cash sales were expected to be £20,000 in January, £40,000 in February and £50,000 thereafter. 70% of credit customers were expected to pay after 1 month for a cash discount of 5%. The remaining customers will pay after 3 months, 3% of them are expected to be bad debts. A long term loan is to be raised of £60,000 on March 1st. Purchases of materials are planned in January of £20,000, £40,000 in February, £60,000 in March, and increasing by £5000 thereafter. Suppliers have granted two months’ credit. Wages and salaries will cost £15,000 from January to April and rise to £20,000 thereafter. Tax deductions of 20% of labour cost will be paid to the Inland Revenue one month after the deduction. Rent costs £15,000 per annum to be paid quarterly in advance Insurance for the year of £8 000 is to be paid in January Rates of £25,000 per annum are to be paid half-yearly in March and September A special advertising promotion is budgeted for January of £30,000 with costs dropping to £10,000 from February to April, and dropping to £5,000 from May to June. Paid one month in arrears. A vehicle costing £15,000 will be bought. £10,000 will be paid as deposit in March with two further payments of £2,500 to be made in April and May. Premises will be purchased in February for £70,000. An overdraft has been utilised with 12% interest. Compute the cash flows first and then complete the cash budget. Compute a Cash Budget for a Small Business Compute a cash budget from the information given. 6 months of trading for a small business start-up65 000 £1 ordinary shares were issued for cash on 1st of January Sales are budgeted at £25,000 in January, £50,000 in February, £80,000 in March, and then rising £20,000 by each month. Of these sales, cash sales were expected to be £20,000 in January, £40,000 in February and £50,000 thereafter. 70% of credit customers were expected to pay after 1 month for a cash discount of 5%. The remaining customers will pay after 3 months, 3% of them are expected to be bad debts. A long term loan is to be raised of £60,000 on March 1st. Purchases of materials are planned in January of £20,000, £40,000 in February, £60,000 in March, and increasing by £5000 thereafter. Suppliers have granted two months’ credit. Wages and salaries will cost £15,000 from January to April and rise to £20,000 thereafter. Tax deductions of 20% of labour cost will be paid to the Inland Revenue one month after the deduction. Rent costs £15,000 per annum to be paid quarterly in advance Insurance for the year of £8 000 is to be paid in January Rates of £25,000 per annum are to be paid half-yearly in March and September A special advertising promotion is budgeted for January of £30,000 with costs dropping to £10,000 from February to April, and dropping to £5,000 from May to June. Paid one month in arrears. A vehicle costing £15,000 will be bought. £10,000 will be paid as deposit in March with two further payments of £2,500 to be made in April and May. Premises will be purchased in February for £70,000. An overdraft has been utilised with 12% interest. Compute the cash flows first and then complete the cash budget