ASSIGNMENT OF BUDGETING

BUDGETED BALANCE SHEET

MEMBERS:
1. PUJI NOVITA SARI (7101416040)
2. MELIANDAYANI (7101416088)

IUP ECONOMICS EDUCATION 2016

FAKULTAS EKONOMI
UNIVERSITAS NEGERI SEMARANG
2018
 Balance Sheet Budgeting

A. Definition of Balance Sheet Budgeting

A Budgeted Balance Sheet has many definition. Gunawan said that
balance sheet budget is a budget that plans in more detail about each post in the
balance sheet, especially items related to company liquidity. Supriyono said
balance sheet budget is a budget that shows the implications of various types
of budgets on assets, debt and capital elements in the coming year. And then,
Munandar said that the balance sheet budget is a budget that contains the
financial position of the forthcoming company which contains an outline
estimate. The other definition of balance sheet budgeting is detailed in detaila
report that management uses to predict the levels of assets, liabilities, and
equity based on the budget for the current accounting period. In other words,
the budgeted balance sheet shows where all of the account would be at the end
of a period if the actual company performance matched the budgeted estimates.
Preparing this report is usually the last step in finalizing a master budget plan.
At the end of each period, management usually starts planning a master budget
for the next period. The master budget is made up of a ton of smaller budgets
for sales, cash, selling expenses, and general expenses. All of these budgets are
combined to make one big, comprehensive financial plan. Once the master
budget is done, management has to see what the company financial statements
will look like if the company can achieve their goals for the period. That’s when
the budgeted income statement and balance sheet are made.
These two reports summary the impact the budget will have on the financial
position of the company if the budgeted numbers are met. Think of it like a
sanity check. Management wants to check their plans to make sure they are in
the best interest of the company in the long run. For example, production
managers might want to increase manufacturing facilities in the next period by
taking out a loan. Although the extra production capacity will add additional
income to the bottom line, it will also increase the overall debt load on the
balance sheet. Depending on current debt covenants, the company may not be
 able to take out additional loans even if that means sacrificing potential
revenues.
The end of the whole process of compiling a company's comprehensive
budget is the preparation of the balance sheet budget. Balance sheet budget is
the final stage of all stages that must be passed to compile the master budget of
a business entity. The new balance sheet budget will be prepared if other partial
budgets have been prepared. Based on the sharing of a partial budget owned by
a company starting from the sales budget, production budget, various budget
costs, cash budget, and profit budget, the company can arrange the balance
sheet budget. In general, the balance sheet consists of two major parts, namely
the asset side and the liability / liability side. The asset side contains a list of
company assets along with details of types and amounts. Whereas the liability
side contains company obligations to creditors and to shareholders or company
owners. Another thing that needs to be considered in preparing the balance
sheet is the order in which the accounts are prepared. Asset accounts are
arranged in the order of their liquidity, ie the estimated speed of these assets
can be disbursed into cash. The easier and the faster a certain asset becomes
cash, the more prioritizing the position in the balance sheet. On the liability
side, the arrangement is started with obligations that are due to maturity.

B. The Purpose and benefits of Balance Sheet Budgeting

a. The balance sheet budget is prepared on the basis of the initial balance
sheet for the period adjusted to the data contained in the various budgets
of the period concerned.
b. As a work guideline for manufacturing companies that carry out their
production activities, especially in terms of capital originating from cash
or debt.
c. As a disclosure of some unfavorable financial conditions that management
wants to avoid
d. As a final check on the mathematical power of all other schedules.
e. As a work watchdog that helps management in leading the company
f. As a tool to highlight resources and obligations in the future.
C. Methods
To compile a balance sheet budget, the easiest method is to use the basic
accounting equation. Where in the method is based on the equation that the
amount of assets will always be the same as the amount of debt / liabilities and
capital / equity of a particular business entity.
AKTIVA = KEWAJIBAN + EKUITAS

Every time an addition occurs in one component of the assets of a business

entity, it will always be accompanied by an addition in the component of
liabilities or equity or a reduction in one component of another asset. Likewise,
if there is a reduction in one component of the asset, it will always be
accompanied by a reduction in the component of liabilities or equity or an
addition to one of the other asset components.

D. Sample Case
Information that we need to prepare Balance Sheet Budgeting are:
a) Balance Sheet December 31st, 2014
b) Loss Profit Budgeting 2015
c) Cost Production Budgeting 2015
d) Additional budgeting
1. Balance Sheet December 31st, 2014

PT ZIS
Balance December 31st, 2014
Asset Pasiva
Current Assets Current Liability
Cash and Bank 400 Accounts 24.000
Payable
Accouts 30.000 Interest payable 900
receivable
Raw Materials 20.000 Tax Payable 20.000
Finished Goods 24.000
Inventory
Prepaid rent 700
Amount of CA 75.100 Amount of CL 44.900
Fixed Assets Equity
Land 100.000 Common Stock 198.000
Vehicle 220.000 Saldo laba 192.200
(deficit)
Acc. Deprec. Of 16.000 204.000 Amount of 390.200
Vehicle Equity
Office Equipment 60.000
Acc. Deprec. Of 4.000 56.000
office equipment
Amount of FA 360.000
Amount of Assest 435.100 Amount of 435.100
Pasiva
2. Loss and Profit Budgeting 2015
PT ZIS
Loss and Profit Budgeting 2015
End of period on December 31st, 2015
Sales 200.000
Cost of Goods Sold
Beginning Inventory 24.000
Cost Production 160.000
Inventory available for sale 184.000
Minus: Ending Inventory 20.000
Cost of Goods Sold 164.000
Gross Profit budgeting 36.000
Operational Expense
Depreciation of Vehicle expense 1.200
Offrice equipment expense 800
Rent expense 2.000
Office supplies expense 1.000 5.000
Operational profit budgeting 21.000
Other income and other expenses
Interest expense 6.000
Earning Before Tax 25.000
Income Expense (PPH) 7.500
Net Profit Budgeting 17.500
 3. Cost Production Budgeting 2015
PT ZIS
Cost Production Budgeting
End of periode on 31 Desember 2015
Raw Materials
Beginning raw materials 20.000
Purchase on December 130.000
Available Raw Material 150.000
(-) Ending of Raw Material 24.000
Cost for production 126.000
Direct Labor 20.000
Overhead Pabric 14.000
Cost production Budgeting 2015 160.000

4. Additional Information that we need to prepare balance sheet budgeting 2015:

a. Sales in cash 2015 Rp 20.000
b. Increasing cash during 2015:
1) Repayment of accounts receivable by debitur Rp 190.000
2) Issuance of new shares Rp 70.000
c. Decreasing cash during 2015 :
1) Repayment accounts payable to buy raw material Rp 136.000
2) Pay prepaid rent Rp 2.200
3) Purchasing office supplies Rp 1.000
4) Indirect Labor Salary Rp 20.000
5) Overhead Pabric Rp 14.000
6) Income Expense (PPH) Rp 7.500
7) Pay deviden Rp 10.000
STEP 1
Calculating Cash Balance Per December 31st, 2015
Cash Balance Januari 1st, 2015 400 Balance Sheet Desember 2014
(+) reception cash 2015
Sales in Cash 20.000 From Additional Information
Repayment Acc. Receivable 190.000 From Additional Information
Issuance of new shares 70.000 From Additional Information
Available Cash Balance 280.400
(-) Spending Cash 2015
Repayment Account Payable 136.000 From Additional Information
Spending prepaid rent 2.200 From Additional Information
Purchasing office supplies 1.000 From Additional Information
Spending direct labor 20.000 From Additional Information
Spending Overhead Pabric 14.000 From Additional Information
Spending Income Expense 7.500 From Additional Information
Spending Devidend 10.000 From Additional Information
Cash Balance Per 31st Desember 89.700
2015

STEP 2
Calculating Accounts Receivables Per 31 Desember 2015
Accounts Receivable Per 31 30.000 From Balance Sheet
Januari Desember 2014
(+)
Sales in Credit 2015 180.000 Total of Sales 2015 Rp
200.000 minus sales in cash
Rp 20.000
Accounts Receivable 210.000 180.000 + 30.000 (saldo
piutang neraca 2014)
(-)
 Repayment Acc. Receivable by 190.000 From additional information
debitur
Accounts receivable Per 31 20.000
Desember 2015

STEP 3
Calculating Raw material and Inventory available for sale
1. Raw Material per December 31st, 2015 Rp 24.000 from cost production
budget
2. Inventory available for sale per December 31st, 2015 Rp20.000 from profit
and loss budget

STEP 4
Calculating Office Supplies Per 31 Desember 2015
Office Supplies Per 1 Januari 2015 0 From balance sheet
December 2014
(+)
Purchasing office Supplies 1.000 From Spending cash
information
Amount of supplies 1.000
(-)
Officce supplies expense 1.000 From loss and profit
budgeting
Office Supplies Per 31 Desember 0
2015

STEP 5
Calculating prepaid rent Per 31 Desember 2015
Prepaid rent Per 1 Januari 2015 700 Dari Neraca Desember 2014
(+)
Spending cash for rent in 2015 2.200 (form spending cash
information)
 Amount of prepaid rent 2.900
(-)
Rent Expense 2.000 From Loss and profit
budgeting
Prepaid rent Per 31 Desember 2015 900

STEP 6
Calculating Fixed assets Per 31 Desember 2015
1. Land
Land per 31 Desember 2015 100.000 No one purchase transaction
2. Vehicle
Cost of vehicle per 1 Januari 2015 220.000 Additional Information

Purchasing vehicle in 2015 0

Amount of vehicle per 31 Desember 220.000
2015
3. Accumlation Deprec. Of
Vehicle
Accumlation Deprec. Of Vehicle per 16.000 From Balance Sheet 31
1 January 2015 Desember 2014
Deprec. Of Vehicle expense in 2015 1.200 From Loss and profit
budgeting
Accumlation Deprec. Of Vehicle per 17.200
31 Desember 2015
4. Office Equipment
Cost of office equipment per 1 60.000 Dari neraca 31 Desember
Januari 2015 2014
Purchasing office equipment in 2015 0 -
Amount of office equipment per 31 60.000
Desember 2015
 5. Acc. Deprec. Of Office
Equipment
Acc. Deprec. Of Office Equipment 4.000 From Balance Sheet 31
per 1 Januari 2015 Desember 2014
Deprec. Of Office Equipment in 2015 800 From Loss and profit
budgeting
Acc. Deprec. Of Office Equipment 4.800 -
per 31 December 2015

STEP 7
Calculating Accounts Payable Per 31 Desember 2015
Accounts Payable Per 1 Januari 24.000 From Balance Sheet 31
2015 Desember 2014
(+)
Purchasing Raw Mataerials 130.000 From Cost Production
budgeting
Amount of Accounts Payable 154.000
(-)
Repayment Accounts Payable 136.000 From spending cash
information
Accounts Payable Per 31 18.000
Desember 2015

STEP 8
Calculating Interest Payable Per 31 December 2015
Interest Payable Per 1 Januari 2015 900 From Balance Sheet 31
Desember 2014
(+)
Interest payable 2015 6.000 Dari anggaran laba rugi
Amount of Interest Payable 6.900
(-)
Payment of interest payable 0
Interest Payable Per 31 December 6.000
2015
STEP 9
Calculating Tax Payable Per 31 Desember 2015
Tax Payable Per 1 Januari 2015 20.000 From Balance Sheet 31
Desember 2014
(+)
PPH 2015 7.000 From Loss and profit
budgeting
Amount of Tax payable 27.500
(-)
Payment of tax in 2015 7.500
Tax Payable Per 31 Desember 20.000
2015

STEP 10
Calculating common stock Per 31 Desember 2015
Common stock Per 1 Januari 198.000 From Balance Sheet 31
2015 Desember 2014
(+)
Isssuance new shares 2015 70.000 From reception cash
information (additional)
Common Stock Per 31 268.000
Desember 2015

STEP 11
Calculating Saldo Laba per 31 Desember 2015
Saldo Akun Saldo Laba Per 1 192.200 From Balance Sheet 31
Januari 2015 Desember 2014
(+)
Net profit 2015 17.500 From Loss and profit
budgeting
saldo akun saldo laba 209.700
(-)
Spending cash for devidend 2015 10.000 From Additional
information
Saldo akun saldo laba per 31 199.700
desember 2015
STEP 12
Complete the preparation of the balance sheet budget by entering data from the
steps 1-11
PT ZIS
Balance Sheet Budget per 31 December 2015
Asset Pasiva
Current Asset Current Liability
Cash and Bank 89.700 Accounts payable 18.000
Accouts 20.000 Interest Payable 6.900
receivable
Raw Materials 24.000 Tax Payable 20.000

Finished 20.000
Goods
Inventory
Prepaid rent 900
Amount of 154.600 Amount of CL 44.900
CA

Fixed Assets Equity

Land 100.000 Common Stock 268.000
Vehicle 220.000 Saldo laba 199.700
(deficit)
Acc. Deprec. (17.200) 202.800 Total of equity 467.700
of vehicle

Office 60.000
equipment
Acc. Deprec. (4.800) 55.200
of office
equipment
Amount of FA 358.000

Amount of 512.600 Amount of 512.600

Asset Pasiva