# Unit 3 cash budget question!! (accounting aqa)

Accounting and finance discussion, revision, exam and homework help.

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1. Unit 3 cash budget question!! (accounting aqa)
Hey guys,

http://store.aqa.org.uk/qual/gce/pdf...W-MS-JAN10.PDF

Scroll down to question 4a.
I just cannot get my head round where the 16 came from on Proceeds from sale of non-current fixed assets which is then added to 5 to make 21.

I understand where the 5 came from, but 16. How?

Hope someone can help me out, thanks in advance!
2. Re: Unit 3 cash budget question!! (accounting aqa)
Sorry i just saw you PM give me a second to look at the paper
3. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by stefanunited)
Hey guys,

http://store.aqa.org.uk/qual/gce/pdf...W-MS-JAN10.PDF

Scroll down to question 4a.
I just cannot get my head round where the 16 came from on Proceeds from sale of non-current fixed assets which is then added to 5 to make 21.

I understand where the 5 came from, but 16. How?

Hope someone can help me out, thanks in advance!
Ok it asks you for the proceeds therefore you need to use the following:

Cost
- Depreciation
= NBV
- proceeds
= profit/loss

but instead you can rearrange the bottom part as

NBV + profit = proceeds.

In this case NBV = 16 & profit = 5.

I worked out the NBV by doing the following:

The at cost price of non current assets is (1920) [1360 + 560]
NBV - (the balance sheet figure) = 1920 - 1361 = 559
559 - 408 (depreciation of freehold land) = 151

Therefore the accumulated depreciation at end of period is 151
We already have two figures so by deducting them we can get the depreciation of disposal figure.

151 - 180 - 35 = (64)

Going back to the formula - At cost - depreciation = NBV we get:

80 - 64 = 16

Therefore proceeds = NBV + profit which = 16 + 5.

I hope you understand it - it took me ages just to thing of a way to phrase it lol.
4. Re: Unit 3 cash budget question!! (accounting aqa)
That makes sense. Ye I see where it comes from now. Hopefully we won't be given such a challenge in next weeks exam, thanks for your help though, definitely cleared this up for me
5. Re: Unit 3 cash budget question!! (accounting aqa)
Just checked the mark scheme, can't believe all that working out is worth 1 mark :/
6. Re: Unit 3 cash budget question!! (accounting aqa)
7. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by kateshiller)
The Acc Dep for Plant and Equiptment at the end of the period?
8. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by kateshiller)
that cash flow statement is the hardest question AQA have asked, jan 12 was pretty tough as well.
9. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by sukhys)
that cash flow statement is the hardest question AQA have asked, jan 12 was pretty tough as well.
Everything's relative!
10. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by A.A.T.)
Everything's relative!
no jan 2010 was solid at first, you had to work out quite abit, all of the question marks but then i realised some of it you didnt lol
11. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by sukhys)
no jan 2010 was solid at first, you had to work out quite abit, all of the question marks but then i realised some of it you didnt lol
What element did "I" not realise?. Enlighten me.
12. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by A.A.T.)
What element did "I" not realise?. Enlighten me.
lol sorry my poor english, i meant when working through that cash flow statement you did not have to work out the bonus issue on note 2, but my teacher went through it using the T accounts
13. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by sukhys)
lol sorry my poor english, i meant when working through that cash flow statement you did not have to work out the bonus issue on note 2, but my teacher went through it using the T accounts
"lol sorry my poor english, i meant when working through that cash flow statement you did not have to work out the bonus issue on note 2, but my teacher went through it using the T accounts"

I don't believe I worked out the bonus issue on note 2?, Did I?
14. Re: Unit 3 cash budget question!! (accounting aqa)
(Original post by A.A.T.)
"lol sorry my poor english, i meant when working through that cash flow statement you did not have to work out the bonus issue on note 2, but my teacher went through it using the T accounts"

I don't believe I worked out the bonus issue on note 2?, Did I?
AAT forget it Lol

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