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Vincent
CT0179512
DipFT(MM)-9
Lecturer : Saraswathi Turairas
Accounting For Managers Assignment

Table of Contents

1. Cash Budget………………………………………………………………………………………………………………3 2.1. Congo Limited Cash Budget………………………………….…………………………………………….3 2.2. Cash Budget Working………………………………………………………………………………………….4 2. Budgeting…………………………………………………………………………………………………………………..5 3.3. What is Budgeting? …………………………………………………………………………………………….5 3.4. The Importance of Budgeting………………………………………………………………………………6 3.5. The Advantage and Disadvantage of Budgeting…………………………………………………..7 3.6. Consclusion………………………………………………………………………………………………………….7 3. Reference List……………………………………………………………………………………………………………..8

Congo Limited
Cash Budget for 3 months ending 30 April

No.| Details| Febuary$| March$| April$| Total$|
1.| Receipts|
2.| Cash Sale| 268,000| 257,000| 278,000| 803,000|
3.| Receipts from customer (W2)| 2,166,000| 2,052,000| 1,928,500| 6,146,500| 4.| Total Receipt| 2,434,000| 2,309,000| 2,206,500| 6,949,500| 5.| Payments|
6.| Payments to Supplier| 1,647,750| 1,384,500| 1,267,500| 4,299,750| 7.| Salaries and wages| 432,000| 468,000| 463,000| 1,363,000| 8.| Overhead expenses (W3)| 255,000| 245,000| 275,000| 775,000| 9.| Van expenses (W4)| | | 150,000| 150,000|

10.| Taxation| | 156,000| | 156,000|
11.| Total payments| 2,334,750| 2,253,500| 2,155,500| 6,743,750| 12.| Closing|
13.| Net Receipt (Surplus)| 99,250| 55,500| 51,000| 205,750| 14.| Opening balance| 268,000| 367,250| 422,750| 1,058,000| 15.| Closing balance| 367,250| 422,750| 473,750| 1,263,750|

Cash Budget (Working)

No.| Receipts from Customer (W1)| February$| March$| April$| 1.| January (2,280,000*95%)| 2,166,000| | |
2.| February (2,160,000*95%)| | 2,052,000| |
3.| March (2,030,000*95%)| | | 1,928,500|
| | 2,166,000| 2,052,000| 1,928,500|
| |
No.| Payments to Supplier (W2)| February$| March$| April$| 1.| January (1,690,000*97.5%)| 1,647,750| | |
2.| February (1,420,000*97.5%)| | 1,384,500| |
3.| March (1,300,000*97.5%)| | | 1,267,500|
| | 1,647,750| 1,384,500| 1,267,500|
| |
No.| Overheads Expenses (W3)| February$| March$| April$| 1.| January (320,000-65,000)| 255,000| | |
2.| February (310,000-65,000)| | 245,000| |
3.| March (340,000-65,000)| | | 275,000|
| | 255,000| 245,000| 275,000|

No.| Van Expenses (W4)| February$| March$| April$|
1.| 2 New Vans @ $75,000| | | 150,000|
| | | | 150,000|

Budgeting
What is Budgeting ?
Budgeting is a systematic plan for planning the expenditure of a company usually fixed resource, such as money or time, during a given period ,every company have different type of budgeting. Some company use long term budgeting and some company use long term budgeting and some company use both of the short term and long term budgeting according to their company requirement. There are two types of budgeting :

Short term budgeting is usually about half year to one year or less than five years budgeting planning. Long term budgeting is usually more than five years planning. (www.studymode.com) The usage of short term budgeting is usually group of small to middle company ,and the usage of long term planning is usually a group of medium to huge company. As the types of budgeting expands from time to time . there are several external factors that can affect them , examples the economic situation of the country, cancelation of order, and other factors. Budget must be revised periodically, if there is several changes in the company such as financial situations , economic and policies and even the change of management system , therefore budgeting also need to adapt with these several factors In this paper I will tell you about the important of budgeting in short or long term planning in...
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