EM2963 - Examining Accounts: Cash Flow Tests
‘Minus Cash’ - Week 2
Cash transactions are isolated as follows
Week 2
£ | £ | £ | |
Cash brought forward, as recorded | 200 | ||
Takings as recorded | |||
Monday | 181 | ||
Tuesday | 202 | ||
Wednesday | 78 | ||
Thursday | 183 | ||
Friday | 261 | ||
Saturday | 364 | 1269 | |
Cash available (brought forward and recorded) | 1469 | ||
Cash payments as recorded | |||
Monday: Sundries | 7 | ||
Tuesday: Windows | 15 | ||
Wednesday: Post office | 6 | ||
Thursday: | |||
Friday: Casual wages | 140 | ||
Saturday: Own drawings | 180 | ||
Total Cash Payments | (348) | ||
Bankings: | |||
Wednesday: | 400 | ||
Friday: | 400 | ||
(800) | |||
Cash carried forward | (200) | ||
Cash used (spent, banked and carried forward) | 1348 | ||
Surplus (available - less used) | 121 |
The net difference over the two weeks is only £20, but the ‘excess’ in Week 2 cannot be carried back to cover the deficiency in Week 1, because this money ‘became available’ later.