Junior Cycle Business Studies Cash Flow: This is an Analysed Cash Book an

Question

This is an Analysed Cash Book and Monitoring of Overheads Question.

Answer all parts of this question:

(A) Prepare the Analysed Cash Book of HOGAN CATERING Ltd from the data supplied below.

Use the following money column headings:

Debit Side (Receipts) Side:  Bank;  Debtors
Credit Side (Payments) Side: Bank;  Van;  Wages; Ingredients;  Waste Collection

Date	Transaction	Receipt No	Method	Amount
€

1/5/2016	Balance at bank		 	3,000
2/5/2016	Paid for ingredients	Visa Debit	3,400
3/5/2016	Paid wages	Paypath	1,700
7/5/2016	Paid for diesel	Visa Debit	600
10/5/2016	Paid for waste collection	Visa Debit	450
12/5/2016	Received from Bane Ltd	1	3,900
12/5/2016	Paid van insurance	Visa Debit	1,100
14/5/2016	Paid for diesel	Visa Debit	500
17/5/2016	Paid for wages	Paypath	1,300
20/5/2016	Paid for ingredients	Visa Debit	2,800
22/5/2016	Received from Kelly Ltd	2	3,700
25/5/2016	Paid for waste collection	Visa Debit	700
31/5/2016	Paid wages	Paypath	1,450

(B) On the sheet supplied with this paper you will find a partially completed table showing Budgeted Overheads for May 2016.

(i) Complete the Actual Columns using the totals from the Payments side of Analysed Cash Book in part (A).
Show the difference between the Actual and Budgeted figures by completing the column marked Difference.

(ii) List the overheads whose actual figures are greater than the budgeted figures and give one possible reason for the difference in each case on the sheet supplied with this paper.

(iii) List the overheads whose actual figures are less than the budgeted figures and give one possible reason for the difference in each case on the sheet supplied with this paper.

(C) State three reasons why it is important for a business to monitor its overheads on the sheet supplied with this paper.

Overheads	Actual €	Budgeted €	Difference €
Van	2,200	2,300	-100
Wages	4,450	5,000	-550
Ingredients	6,200	5,500	700
Waste Collection	1,150	700	450

This is an Analysed Cash Book and Monitoring of Overheads Question - Junior Cycle Business Studies - Question 5 - 2016

Worked Solution & Example Answer:This is an Analysed Cash Book and Monitoring of Overheads Question - Junior Cycle Business Studies - Question 5 - 2016

Prepare the Analysed Cash Book of HOGAN CATERING Ltd

Analysed Cash Book of HOGAN CATERING Ltd (Debit Side)

Analysed Cash Book of HOGAN CATERING Ltd (Credit Side)

Complete the Actual Columns

List the overheads whose actual figures are greater than the budgeted figures

List the overheads whose actual figures are less than the budgeted figures

State three reasons why it is important for a business to monitor its overheads

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Date	Details	Receipt No	Amount €
01/05/2016	Balance b/d		3,000
02/05/2016	Ingredients	Visa Debit	3,400
22/05/2016	Received from Kelly Ltd	2 DL	3,700
31/05/2016	Balance c/d		3,400