From the following information, draw up a Cash Budget for the 3 months that is ending on 31 March 2010:
- Cash and Bank Balance on 1 January 2010-Rs. 1,00,000.
- Purchases:
|
Actual |
Estimated |
||
|
October 2009 |
2,00,000 |
January 2010 |
2,40,000 |
|
November 2009 |
2,40,000 |
February 2010 |
2,00,000 |
|
December 2009 |
2,25,000 |
March 2010 |
2,50,000 |
iii.Sales:
|
Actual |
Estimated |
||
|
October 2009 |
3,25,000 |
January 2010 |
4,00,000 |
|
November 2009 |
3,50,000 |
February 2010 |
4,10,000 |
|
December 2009 |
3,75,000 |
March 2010 |
4,45,000 |
- Wages:
|
Actual |
Estimated |
||
|
November 2009 |
75,000 |
January 2010 |
90,000 |
|
December 2009 |
75,000 |
February 2010 |
90,000 |
|
March 2010 |
1,00,000 |
- Expenses:
|
Actual |
Estimated |
||
|
November 2009 |
25,000 |
January 2010 |
30,000 |
|
December 2009 |
30,000 |
February 2010 |
40,000 |
|
March 2010 |
40,000 |
v. 10% of purchases and sales are on cash basis.
vi. Advance payment of Income Tax in March 2010—Rs. 25,000.
vii. Plant to be purchased for Rs. 50,000 and price paid in January 2010.
viii. Time lag:
|
Credit Purchases |
2 months |
|
Credit Sales |
1 month |
|
Wages |
1/2 month |
|
Expenses |
1/4 month |