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HMRC internal manual

Enquiry Manual

Examining Accounts: Cash Flow Tests

‘Minus Cash’ - Week 2

Cash transactions are isolated as follows

Week 2

       
  £ £ £
Cash brought forward, as recorded   200  
Takings as recorded      
Monday 181    
Tuesday 202    
Wednesday 78    
Thursday 183    
Friday 261    
Saturday 364 1269  
Cash available (brought forward and recorded)     1469
       
Cash payments as recorded      
Monday: Sundries 7    
Tuesday: Windows 15    
Wednesday: Post office 6    
Thursday:      
Friday: Casual wages 140    
Saturday: Own drawings 180    
Total Cash Payments   (348)  
       
Bankings:      
Wednesday: 400    
Friday: 400    
    (800)  
       
Cash carried forward   (200)  
Cash used (spent, banked and carried forward)     1348
Surplus (available - less used)     121

The net difference over the two weeks is only £20, but the ‘excess’ in Week 2 cannot be carried back to cover the deficiency in Week 1, because this money ‘became available’ later.