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    TR TP Cash Budget

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    Amiera Adlyna
    The document compares and contrasts a statement of cash flows (SOCF) and a cash budget. It notes that a SOCF includes non-cash expenses like depreciation, deals with past data, and is published, while a cash budget does not include non-cash expenses, deals with future transactions, and is an internal document. It also provides an example cash budget that forecasts receipts and payments over two months and ensures sufficient cash flow.

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    TR TP Cash Budget

    Uploaded by

    Amiera Adlyna
    20 views1 page
    The document compares and contrasts a statement of cash flows (SOCF) and a cash budget. It notes that a SOCF includes non-cash expenses like depreciation, deals with past data, and is published, while a cash budget does not include non-cash expenses, deals with future transactions, and is an internal document. It also provides an example cash budget that forecasts receipts and payments over two months and ensures sufficient cash flow.

    Original Description:

    TR TP CASH BUDGET ACCOUNTING A LEVEL

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    The document compares and contrasts a statement of cash flows (SOCF) and a cash budget. It notes that a SOCF includes non-cash expenses like depreciation, deals with past data, and is published, while a cash budget does not include non-cash expenses, deals with future transactions, and is an internal document. It also provides an example cash budget that forecasts receipts and payments over two months and ensures sufficient cash flow.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    20 views1 page

    TR TP Cash Budget

    Uploaded by

    Amiera Adlyna
    The document compares and contrasts a statement of cash flows (SOCF) and a cash budget. It notes that a SOCF includes non-cash expenses like depreciation, deals with past data, and is published, while a cash budget does not include non-cash expenses, deals with future transactions, and is an internal document. It also provides an example cash budget that forecasts receipts and payments over two months and ensures sufficient cash flow.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    SOCF Cash budget Cash budget

    1
    include non-cash does not include non-cash Month 1 Month 2
    expenses, i.e, depreciation expenses Receipts
    Cash sales
    deals with historic data deals with future transactions Cash received from TR -

    Payments
    -

    is published is an internal document


    Cash purchases
    Cash paid to TP
    Rent
    Trade receivables budget
    Wages
    Purchase of machine
    Month 1 Month 2 -

    Bal b/d Bal b/d


    -

    Credit sales (+) Receipts


    (-) Payments ( ) ( )
    Cash received ( ) ( ) Bal c/d -

    Discount allowed ( ) ( ) -

    Bal c/d

    Benefits of preparing cash budget


    Trade payables budget
    Month 1 Month 2 Solve cash flow problems,
    Bal b/d Ensure sufficient cash available
    e.g. avoid overdrafts
    Credit purchases

    Cash paid ( ) ( ) Identify possible investment


    Discount received ( ) ( ) opportunities for cash surplus
    Bal c/d

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