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Hi
I have gone through the situation, so i can give you some tips.1. if it is from different departments, for. e.g. HR or operations, then provide the admin at that dept with some imprest i.e. delegate the cash handling. For. e.g. if you feel in a week they need approx 10000, then give them a imprest and ask them to submit a weekly cash claim. once they submit, then u can replenish their float.
2. Make sure the summary sheet is signed by HOD & the next in line along with the user. This will make sure it has gone through some checking before it comes to you and will save time for the HOD also instead of signing every single P cash voucher
3. Put a cap on the petty cash payment, for. e.g. a single payment can not be more then 500 etc.
4. In case of payments for fuel, try to get a fuel card for the vehicles.
5. Check who are getting paid majorly through cash, have a meeting with them to arrange for a cheque payment.
6. If they are not ready to give credit, may be u can give them a un-crossed cheque or at rare occasions cash cheque. This will help u to eliminate un-necessary cash handling.
7. Last but not the least, if you are providing imprest to others, make sure they are covered under fidelity insurance.
Hope this helps.
Hi,
The working capital is shown as a negative cash flow in year 0 ( zero) and will be shown as a positive cash flow in year 5. That’s how it should be. If you look at the model answer, have a look at the section below the 1-6 year workings.
It shows
Present value of cash inflows 993
Working capital investment (90)
Cost of Machine (800)This is where the W.capital has been shown as a outflow in the initial years.
Paper was ok, Q2 was tougher then Q3, but how in the world the examiner expects us to finish all these in 3 hours, its really tough.