It is 1st of October, 2017 today.

Make out a cash budget of Hero Productions for October, November and December
2017 from the following information:

1. Purchases

Actual (Rs.) Budget (Rs.)

July 4,00,000 October 5,00,000
August 5,00,000 November 4,00,000
September 4,50,000 December 3,50,000

2. Sales:

July 9,00,000 October 9,00,000

August 8,00,000 November 8,00,000
September 8,50,000 December 8,00,000

3. Wages

July 2,50,000 October 3,00,000

August 3,00,000 November 3,00,000
September 3,50,000 December 3,50,000

4. Expenses

July 70,000 October 80,000

August 60,000 November 60,000
September 50,000 December 70,000

5. Miscellaneous
6. Incentive Bonus payable in October 20,000
Advance income tax in December 50,000
Plant to be purchased in November 1,50,000

i. 10% of purchases and sales are on cash basis

ii. Electricity expenses Rs. 25,000/- payable each month
iii. Credit purchases are paid after one month and credit sales are realized after two
months.
iv. Wages and general expenses paid in the next month
v. Cash and bank balances on 1st October 2017 Rs. 400,000/-
 Hero Productions

Cash Budget Format for Oct-Dec 2017

Oct 2017 Nov 2017 Dec 2017

Opening cash
Add Cash sales
Credit sales realizable
Total cash
Less expenses
Cash purchase
Credit purchase payable
Wages payable
Electricity payable
Expenses payable
Incentive bonus payable
Advance income tax
Plant purchase
Total expenses
Closing cash