If using the shortened

summary form, and

the problem mentions loan
or borrowing,
place the borrowing
in the receipts section
(since when you borrow
you receive money).
If repaying principal and
interest, it will be reflected
in the payments section.

Net Inflow/(Outflow)
Balance b/f
Balance c/f

When question
does not mention
minimum cash balance
use SHORT summary
format

Net Inflow/(Outflow)
Balance b/f
Loan
Repayment
Principal
Interest

Long Format - use when

minimum balance exists

Different Summaries

Summary | Month 1 | ...| Month x | Tota

Net
Inflows/Outflows
(Receipts
payments)
balance
b/f
balance
c/f

Receipts | Month 1 | ...| Month x | Total

$Mn
Total
Payments | Month 1 | ...| Month x | Total
Total

Template

Cash Purchases
Credit Purchases
Overheads
Dividends
Investment
Salaries
Computer Equipment
Taxation
Principal
Interest
Cash Sales
Credit Sales
Capital
Dividends
Interest Income
Commission Income

Receipts

Cash Budget

Cash Budget Overview

Procedure

Payments

Determine Payments
expected each
month

Determine Receipts from

Debtors each
month

Determine Cash Balance

Simple Procedure

Note - cash in these

circumstances include
the bank balance

Cash is important - we
need to ensure that the
business does not
run out of cash

Shortage of cash
should be foreseen
and actioned

Cash Budget Overview

when overheads
include depreciation,
the depreciation must
be deducted from the
overheads and the
resulting figure is placed
in the cash budget.
Depreciation is a non cash
item hence it is deducted
and left out

Discounts given
for paying early

Amount % of sales
collected

Scenarios