Question

Activity 6

• 1

  Acriss is an accounting firm that uses a credit system of charging its clients. Credit terms are 80% of fees are payable in the quarter in which they are incurred with the remaining 20% due the following quarter. Use the client hours demanded in the table to prepare the annual forecast. Include the net and GST amounts. The opening accounts receivable is $70,000. Charge-out rates are Senior staff $150 per hour and Junior staff $100 per hour.

  	September	December	March	June
  Senior	680	680	600	600
  Junior	1,500	1,350	1,200	1,000

  Acriss Cash Receipts Forecast Year ending 30 June 20XX
  Opening Balance Accounts Receivable	Hours Senior	@ $150/hr	Hours Junior	@ $100/hr	Total fees charged	Current	Credit balance previous quarter	Total Net GST	GST
  September	680.00	$102,000.00	1,500.00	$150,000.00	$252,000.00	$201,600.00
  December	680.00	$102,000.00	1,350.00	$135,000.00	$237,000.00	$189,600.00
  March	600.00	$90,000.00	1,200.00	$120,000.00	$210,000.00	$168,000.00
  June	600.00	$90,000.00	1,000.00	$100,000.00	$190,000.00	$152,000.00
  Closing	2,560.00	$384,000.00	5,050.00	$505,000.00	$889,000.00	$711,200.00

  a) Which budget is the GST amount transferred to:

  1. For cash payment?
  2. At the end of the period?

  50–80 words

• b. What is the closing accounts receivable amount? How is it calculated? 30–50 words

• c. Which budget is this transferred to? 30–50 words

Please complete the full answer . Specially, the bold ones . ( in context of Australia )

Answer 1

a) Which budget is the GST amount transferred to:

For cash payment?

Cash Budget will be affected as cash budget includes all cash incomes and expenses.

At the end of the period?

The GST amount will be transferred to Sales budget at the end of accounting period.

b. What is the closing accounts receivable amount? How is it calculated?

Closing Accounts Receivables should be zero at the end of accountingperiod. The reason for this is that this account should be closed at the end of each accounting period.

This amount is transferred to Sales Budget at the end of the period.