From the following information, prepare a Cash Budget for 3 months that ended on 30 June 2010:
|
Months |
Sales |
Purchases |
Wages |
Misc. Exp. |
|
February |
1,20,000 |
84,000 |
10,000 |
5,000 |
|
March |
1,30,000 |
1,00,000 |
12,000 |
8,000 |
|
April |
80,000 |
1,04,000 |
8,000 |
6,000 |
|
May |
1,16,000 |
1,06,000 |
10,000 |
12,000 |
|
June |
88,000 |
80,000 |
8,000 |
6,000 |
Additional information:
- Sales: 20% realized in the month of sale, discount allowed 2%. Balance realized equally in two subsequent months.
- Purchases: These are paid for in the month following the month of supply.
- Wages: 25% paid in arrear the following month.
- Miscellaneous Expenses; Paid a month in arrears.
- Rent: Rs. 1,000 per month and quarterly in advance, due in April.
- Income Tax: First installment of advance Tax—Rs. 25,000 due on 15 June.
- Cash in hand: Rs. 5,000 on 1 April 2010.