Cos Accounting Assignment

DOMBIVLI SHIKSHAN PRASARAK MANDALS
K. V. PENDHARKAR COLLEGE OF
ARTS, SCIENCE AND COMMERCE
(AUTONOMOUS).
Dombivali (East) 421203, Dist. Thane.
DEPARTMENT OF ACCOUNTING & FINANCE
SECOND INTERNAL EXAMINATION

SEMESTER VI
ASSIGNMENT
For the subject of
Cost Accounting
By
(Student Name: Hansika Pramod Bedekar)

(Roll No: 22-9225)
(Class and Division: TYBAF/B)
To the Subject Teacher

Prof. Rakesh Chavan
&
Prof. Ahwini Bagkar
Budget
Introduction
A budget is a Calculation play, usually but not always financial, ,for a defined
period, often one year or a month. A budget may include
anticipated sales volumes and Revenues, resource quantities including time,
costs and expenses, environmental impacts such as greenhouse gas
emissions, other impacts, assets, liabilities and cash flows. Companies,
governments, families, and other organizations use budgets to
express Strategic plans of activities in measurable terms.
A budget expresses intended expenditures along with proposals for how to

meet them with resources.
Types of Budget:
1.Sales Budget
2.Production Budget
3.Captial Budget
4.Cash Flow/ Cash Budget
5.Marketing Budget
6.personal Budget
7.Flexibility Budget
8.Expenditure Budget
Cash Budget
Meaning : a prediction of future cash receipts and expenditures for a particular time period.
It usually covers a period in the short-term future. The cash flow budget helps the business to
determine when income will be sufficient to cover expenses and when the company will need to
seek outside financing.
Company profile:
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two – wheelers, based in India. In 2001, the Company achieved
the coveted position of being the largest two-wheeler manufacturing Company in
India and also, the ‘World No.1’ two-wheeler Company in terms of unit volume
sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.
Vision :
The story began with a simple vision – the vision of a mobile and an empowered
India, powered by its bikes. Hero MotoCorp Ltd., company’s new identity, reflects
its commitment towards providing world class mobility solutions with renewed
focus on expanding company’s footprint in the global arena.
Mission
Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers’
needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The Company
will provide an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring relationships
with its partners.
Manufacturing:
Hero Honda bikes are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which
are located in the state of Haryana in northern India. The third and the latest
manufacturing plant is based at Haridwar, in the hill state of Uttarakhand.
Cash budget of a company

Hero motor- cop limited is a bike manufacturing company established by
Brijmohan lall Munjal in the year 1948..Company is located in New
delhi.Currently company is producing 15,000 units of product A,6000 units of
product B, 5000 units of product C. Currently in 2021 company’ s turnover is 4 cr ,
whereas last year profit shows 40 lakhs . Company is having strength of 30
employees and company is planning to expand its business for which company
has taken loan of 1 cr. Company is opening it’s 2 nd office in mumbai. Following
could be the cash Budget of the company for upcoming months.
In The Books of Hero motor-cop Ltd.
Computation of cash Budget
Sr Particular April May June July August Septemb

. s er
N
o
A) opening 40,00,0 58,62,0 76,24,00 93,86,00 1,12,98,0 1,34,45,0
balance 00 00 0 00 00 00
of cash
B) Receipts
a. Cash 35,00,0 28,00,0 25,00,00 27,00,00 31,00,00 33,00,00
sales 00 00 0 0 0 0
b. Credit - 500,000 7,00,000 6,00,000 4,00,000 3,00,000
sales
c. Interest 6,000 6,000 6,000 6,000 6,000 6,000
d. Rent 10,000 10,000 10,000 10,000 10,000 10,000
e. Dividend 20,000 20,000 20,000 20,000 20,000 20,000
f. scrap 5,000 5,000 5,000 5,000 5,000 5,000
C) Sub-Total 75,41,0 92,03,0 1,08,65,0 1,27,27,0 1,48,39,0 1,70,86,0
00 00 00 00 00 00
D) Payment
a. Cash 15,00,0 13,00,0 12,00,00 11,00,00 10,00,00 12,00,00
purchase 00 00 0 0 0 0
s
b. Credit - 2,00,00 2,00,000 2,50,000 3,00,000 3,00,000
purchase 0
s
c. Salary to 40,000 40,000 40,000 40,000 40,000 40,000
employe
e
d. Other 7,000 7,000 7,000 7,000 7,000 7,000
office
expenses
e. Other 12,000 12,000 12,000 12,000 12,000 12,000
productio
n
expenses
f. Selling 20,000 20,000 20,000 20,000 20,000 20,000
and
distributi
on exp.
g. Registrati 1,00,00 - - - - -
on 0
charge
h. Continge - - - - 15,000 -
nt fund
used
E) Total 16,79,0 15,79,0 14,79,00 14,29,00 13,94,00 15,79,00
payment 00 00 0 0 0 0
F) Closing 58,62,0 76,24,0 93,86,00 1,12,98,0 1,34,45,0 1,55,07,0
balance 00 00 0 00 00 00
of cash
Analysis:
1)It was observed company has adequate amount of cash at the

beginning of the period.
2)It was observed company is using flexible credit policy hence
percentage of cash and credit sales is not fixed in each transaction.
3)It was observed out of total revenue more than 2% is coming from
non – operating activities that is interest , dividend, rent.
4)From the above data it was observed suppliers is changing credit
policies hence there is no credit or cash percentage pre- decided.
5)out of total payment more than 7%is fixed every month which has no
connection with operating activities.
6)company is data shows positive balance for upcoming months , hence
there is no need to borrow.
SUGGESTIONS and RECOMMANDATIONS:
The suggestion of this company is that the company is not following the
fixed cash and credit pattern which may affect the company’s cash flow
and company image in near future.
Hence, the company should maintain fixed credit policy.
Record shows suppliers are changing credit polices cash moth which
may affect companies out flow I near future.
Hence, creditors can be ask to fix credit policies.
It was also observed that the company has potential of growth because
the above data clearly shows positive cash flow.
Company need to focus in its research and development as contingent
fund of 15,000 were used.

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DOMBIVLI SHIKSHAN PRASARAK MANDALS

DEPARTMENT OF ACCOUNTING & FINANCE

SECOND INTERNAL EXAMINATION

(Student Name: Hansika Pramod Bedekar)

To the Subject Teacher

A budget expresses intended expenditures along with proposals for how to

Cash budget of a company

Sr Particular April May June July August Septemb

1)It was observed company has adequate amount of cash at the

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