From the following information, prepare the Cash Budget for the year ending on 30 June 2005:
|
Months (2005) |
Sales |
Purchases |
Wages |
Other Expenses |
|
February |
2,40,000 |
1,68,000 |
20,000 |
14,000 |
|
March |
2,60,000 |
2,00,000 |
24,000 |
16,000 |
|
April |
1,60,000 |
2,08.000 |
16,000 |
12,000 |
|
May |
2,32,000 |
2,12.000 |
20,000 |
24,000 |
|
June |
1,76,000 |
1,60,000 |
16,000 |
12,000 |
Additional Information:
- Cash in hand on 01 April 2005—Rs. 10,000.
- Sales @ 20% realized in the month of sale and discount allowed is 2%, with the balance realized after 2 months of sales.
- About 4/5th of the Credit Purchase is paid after 1 month of that purchase and next to that month, the balance 1/5th is paid.
- Wages are paid 3/4th on the due date while 1/4th during the next month.
- Other Expenses are paid at a lag of 1 month.
- Income Tax of Rs. 25,000 is due on or before 30 June 2005.