Budgeted monthly sales revenue is as follows: MUR January 56,000 February 45,000 March 85,000 April 62,000 Sales are 40% cash and 60% credit. Credit sales are collected over a two-month period, 75% in the month of sale, 25% in the month following sale. Total sales revenue for the first month of operation of January 2018 amounts to Rs 30,000. 2. 50% of inventory purchased is paid in the month of purchase. The remaining 50% is paid for in the month following purchase. Purchases are budgeted as follows: MUR January 25,000 February 40,000 March 37,000 April 28,500 3. A grant of Rs 40,000 is expected to be received in mid March 2018. 4. A van which cost Rs 100,000 when purchased second hand four years ago is expected to be sold in April 2018 for Rs 50,000. At this time the
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Budgeted monthly sales revenue is as follows: MUR January 56,000 February 45,000 March 85,000 April 62,000 Sales are 40% cash and 60% credit. Credit sales are collected over a two-month period, 75% in the month of sale, 25% in the month following sale. Total sales revenue for the first month of operation of January 2018 amounts to Rs 30,000. 2. 50% of inventory purchased is paid in the month of purchase. The remaining 50% is paid for in the month following purchase. Purchases are budgeted as follows: MUR January 25,000 February 40,000 March 37,000 April 28,500 3. A grant of Rs 40,000 is expected to be received in mid March 2018. 4. A van which cost Rs 100,000 when purchased second hand four years ago is expected to be sold in April 2018 for Rs 50,000. At this time the expected net book value of the van is Rs 37,500. 5. Equipment costing Rs 25,600 will be purchased and fully paid for in February 2018. The equipment will be
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