SolvedEM2964 | Examining Accounts: Example of Cash-Flow Tests
From HM Revenue & Customs · Enquiry Manual
‘Minus Cash’ - Weeks 1 and 2
The taxpayer might claim that the overall deficit is only £20 which shows that it is the carry-over figure which is wrong. This is not the case because there is still an overall deficiency of £20. Is the carry forward figure wrong at the end of Week 2 as well(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
Using the taxpayer’s suggested carry forward of £60 and assuming all Friday’s takings were available for banking and no cash was carried forward to Saturday, the result is
| £ | ||
| Cash available to Friday (£60 + £905) | 965 | |
| Cash used to Friday £800 + £168 | (968) | |
| Deficiency | (3) | |
| - A problem then arises for Saturday | £ | |
| Takings | 364 | |
| Own drawings | (180) | |
| Cash forward | (200) | |
| Deficiency | (16) |
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)