Importance And Importance Of Financial Planning

5320 Words 22 Pages




Task 1
Programme title
HND Business
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It is important for the companies to ensure that the right steps are taken and that they help the activities of the company in a positive manner. This ensures that the company has enough funds to meet any unforeseen event in the future. Due to the nature of this activity, its importance is great and the significance of financial planning is important for the company. It helps in maintaining a proper balance between the outflow and the inflow of funds and avoids the hindrance in the growth and expansion of the company. This means that the aspect of financial planning is given proper importance in the business and that proper steps are taken so that the people work in the most efficient manner. With this, the businessmen and the managers will be able to allocate funds and resources according to the needs of the business and with the help of forecasting, they will be able to ensure that proper and enough funds are set aside for the business and its future …show more content…
Accounts affected: cash, equity, Issued Share Capital (par value £1 per share), shares
B. Cash increase, equity increase, Issued Share Capital (par value £1 per share) decrease by £3,000; shares increase by £7,000
C. Cash will increase by (3000 shares x £1) = £3,000, Issued Share Capital (par value £1 per share) decrease by £3,000; shares increase by £7,000 and equity also increase by (£3,000 - £3,000 + £7,000) = £7,000 Asses = Liability + Equity
Before the transaction £61,135 = £11,900 + £49,235
After the transaction
(£61,135 - £3,000 + £3,000) + £7,000 = £11,900 + (£49,235 + £7,000)
£68,135 = £11,900 + £56,235
Note:That is the best possible option-there isn’t additional loan for the company and the company will sale the unused appliances.


From those three options most effective is the third one-the fakt’s show’s low level of risk and stimulate the company to resort to additional resources.

Task 3
From: Grigor Grigorov,Student ID:MRC/20967/HND
To: Yannick Fansi
Subject: Managing Financial Resources and

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