SolvedEM2963 | Examining Accounts: Cash Flow Tests
From HM Revenue & Customs · Enquiry Manual
‘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.