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what is budgeting and steps required to configure this.
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Answer / dattatraya
Budgeting refers to the planning.
Normally for the following reason budgeting is need in the
business for:-
1. Purchase new assets
2. Selling old assets and purchasing new assets
3. Choosing better option whether to purchase assets
directly or to take the smae on lease.
4. choosing better option whether repair the old assets or
sale the old assets and purchase the new one.
5. Choosing better opting in which area new business to be
set up. It consist of comparision between two or more
option by facility wise, transportaion wise, avaliability
of tranportation wise, government subsidies, government
discount is taxation(i.e. zeo tax where business set up in
SEZ).
6.
| Is This Answer Correct ? | 6 Yes | 1 No |
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Alex’s Trial Balance at 31 December 2015 Dr (BWP) Cr (BWP) Capital 18 240 Bank overdraft 3 000 Fixtures and fittings 14 100 Provision for depreciation-fixtures and fittings 8 800 Inventory 14 200 Trade receivables 12 300 Trade payables 9 900 Revenue 110 000 Purchases 51 000 Discount received 1 800 Wages and salaries 26 000 Sundry expenses 34 000 Discount allowed 620 217 540 ======= 86 420 ======== Required: i Prepare the corrected trial balance at 31 December 2015. (7 marks) ii Show any difference you find as a balance on an appropriate account.
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