Cash Budget

From the following forecasts of income and expenditure, prepare a cash budget for the
months Jan. to June 2018. The Opening balance for Jan 2018 is $15000.

Months Sales Purchase Wages selling Expense

Jan 30000 15000 3000 1150
Feb 35000 20000 3200 1225
March 25000 15000 2500 990
April 30000 20000 3000 1050
May 35000 22500 2400 1100
June 40000 25000 2600 -

Solution

Cash Budget for the year 2018

Particulars Jan Feb March April May June

Opening Balance 15000 25850 36,425 42,935 48,885 57,885
Add Receipts
Sales 30000 35000 25000 30000 35000 40000
Total receipts-A 45000 60850 61425 72,935 83,885 97,885
Payments
Purchases 15000 20000 15000 20000 22500 25000

Wages 3000 3200 2500 3000 2400 2600

Selling expense 1150 1225 990 1050 1100 -
Total Payments-B 19,150 24,425 18490 24,050 26000 27600
Closing Balance A-B 25850 36,425 42,935 48,885 57,885 70285