CASH BUDGET FORMAT

PARTICULARS FEB MARCH APRIL

OPENING BALANCE XXX

(+) RECEIPTS OF CASH

CASH SALES

CREDIT SALES - CASH RECEIVED FROM DEBTORS(CUSTOMERS)

DIVIDEND REC
INTEREST REC
SALE OF FIXED ASSETS
ISSUE OF SHARES
BORROWINGS( FROM THIRD PARTY OR BANK)
SALE OF INVESTMENT

TOTAL OF RECEIPTS XXX

(-) PAYMENTS OF CASH

CASH PURCHASES
PAYMENT TO CREDITORS (TO SUPPLIERS)
PAYMENT OF WAGES
PAYMENT OF EXPENSES
PAYMENT OF DIVIDEND
PAYMENT OF FIXED ASSETS
PAYMENT OF TAX, BONUS, ETC

TOTAL OF PAYMENTS XXX

 FORMAT OF PRODUCTION BUGET

PARTICULARS UNITS
SALES
(+) CLOSING FINISHED GOODS (INCLUDING ORDER)
XXX
(-) OPENING FINISHED GOODS(INCLUDING ORDER)

PRODUCTION UNITS XXX

 FORMAT OF FLEXIBLE BUDGET

COST/UNIT TOTAL AMOUNT(Rs.)

FIXED COST VARY CONSTANT
TOTAL AMOUNT/ NO OF COST/UNIT * NO OF
FORMULA:
UNITS UNITS

VARIABLE COST CONSTANT OR SAME VARY

SEMI - VARIABLE COST -

PARTIALLY FIXED AND
PARIALLY VARIABLE
 THE ILLUSTRATIVE FORMAT OF A SALES BUDGET IS AS UNDER:
LAST YEAR TOTALBUDGETED YEAR TOTALNORTHERN REGIONSOUTHERN REGION
QTY. VALUE QTY. VALUE QTY. VALUE QTY.
PRODUCT X
1stQTR.
2ndQTR.
3rdQTR.
4thQTR
PRODUCT Y
1stQTR.
:
TOTAL
ET IS AS UNDER:
SOUTHERN REGIONCENTRAL REGION
VALUE QTY. VALUE
 1. Koushik and co. wishes to prepare cash budget from jan to june
a.

Production
Months Total Sales Materials Wages Overhead

jan 20000 20000 4000 3200

feb 22000 14000 4400 3300
mar 24000 14000 4600 3300
apr 26000 12000 4600 3400
may 28000 12000 4800 3500
jun 30000 16000 4800 3600

b. Cash balance on Jan was Rs. 10,000

c. A new machine is to be installed at Rs. 30,000 on credit to be repayed by two equal

installments in March and April
d. Sales commission at 5% on total sales is to be paid within the month following actual
sales

e. Share premium amounting to Rs.2000 is obtained with second call

f. Period of credit allowed to customers 1 month

g. Period of credit allowed by suppliers - 2 months

h. Payment of wages - Current Month

i. Assume cash sales to be 50% of the total sales

j. Rs. 10,000 being the amount by second call may be received in march

SOLUTION:
PARTICULARS JAN FEB MAR APR

OPENING BALANCE 10000 12000 23400 13600

RECEIPTS(I):

CASH SALES(50% TOTAL SALES 10000 11000 12000 13000

CREDIT SALES 0 10000 11000 12000
SHARE 2ND CALL 10000
SHARE PREMIUM 2000
TOTAL RECEIPTS(A) 20000 33000 58400 38600
PAYMENTS(II):
MACHINE INSTALLMENT 15000 15000
SALES COMMISSION 1000 1100 1200
WAGES 4000 4400 4600 4600
MATERIALS 20000 14000
PRODUCTION OH 3200 3300 3300 3400
SELLING AND DISTRIBUTION OH 800 900 800 900
TOTAL PAYMENTS(B) 8000 9600 44800 39100

CLOSING BALANCE 12000 23400 13600 -500

an to june

Selling distribution
overhead

800
900
800
900
900
1000

MAY JUN

-500 2000

14000 15000
13000 14000

26500 31000
1300 1400
4800 4800
14000 12000
3500 3600
900 1000
24500 22800

2000 8200
FROM THE FOLLOWING DATA FORCAST THE CASH POSITION AT THE END OF APRIL,
MAY AND JUNE 2015

MONTH(2015) SALES PURCHASE WAGES SALES EXPENSES

FEBRUARY 100000 90000 10500 2500
MARCH 110000 100000 11000 2600
APRIL 60000 110000 7000 2000
MAY 120000 115000 10500 3000
JUNE 80000 90000 8500 2200

FURTHER INFORMATION

1. SALES AT 10% REALIZED IN THE MONTH OF SALES, BALANCE EQUALLY REALISED IN TWO
SUBSEQUENT MONTHS

2. PURCHASES: CREDITORS ARE PAID IN THE MONTH FOLLOWING THE MONTH OF SUPPLY

3. WAGES: 20% PAID IN ARREARS IN THE FOLLOWING MONTH

4. SALES EXPENSES PAID IN THE MONTH ITSELF

5. INCOME TAX Rs. 30000 PAYABLE IN JUNE

6. DIVIDEND Rs. 12000 PAYABLE IN JUNE

7. INCOME FROM INVESTMENTS Rs. 5000 RECEIVED HALF-YEARLY IN MARCH AND

SEPTEMBER

8. CASH BALANCE ON HAND AS ON 1.4.15 IS Rs. 50000

SOLUTION:
PARTICULARS APR MAY JUN
OPENING BALANCE 50000 40700 6400
RECEIPTS:
CASH SALES(10% OF TOTAL
SALES) 6000 12000 8000
CREDIT SALES 94500 76500 81000
INVESTMENT INCOME
TOTAL RECEIPTS(A) 150500 129200 95400

PAYMENTS:
SALES EXPENSES 2000 3000 2200
INCOME TAX 30000
DIVIDEND 12000
PURCHASE 100000 110000 115000
WAGES 7800 9800 8900
TOTAL PAYMENTS(B) 109800 122800 168100

CLOSING BALANCE(A-B) 40700 6400 -72700

SAURASHTRA Co. Ltd WISHES TO ARRANGE OVERDRAFT FACILITIES WITH ITS BANKERS FROM THE PERIOD AUGUST TO OCTO
MOSTLY STOCK. PREPARE CASH BUDGET FOR THE DATA.

MONTH SALES PURCHASE WAGES MFG. EXP

JUNE 180000 124000 12000 3000

JULY 192000 144000 14000 4000
AUGUST 108000 243000 11000 3000
SEPTEMBER 174000 246000 12000 4500
OCTOBER 126000 268000 15000 5000
NOVEMBER 140000 280000 17000 5500
DECEMBER 160000 300000 18000 6000

FURTHER INFORMATION

A) CASH ON HAND 1-08-2010 Rs. 25000

B) 50% OF CREDIT SALES ARE REALISED IN THE MONTH FOLLOWING THE SALE AND THE REMAINING 50% IN
THE SECOND MONTH FOLLOWING. CREDITORS ARE PAID IN THE FOLLOWING MONTH OF PURCHASE

C) LAG IN PAYMENT OF MANUFACTURING EXPENSES HALF MONTH

D) LAG IN PAYMENT OF OTHER EXPENSES ONE MONTH.

PARTICULARS AUG SEP OCT

OPENING BALANCE 25000 49500 -58250
RECEIPTS:
CREDIT SALES 186000 150000 141000
TOTAL RECEIPTS(A) 211000 199500 82750

PAYMENTS:
PURCHASE 144000 243000 246000
WAGES 14000 11000 12000
MEG. EXP 3500 3750 4750
TOTAL PAYMENTS(B) 161500 257750 262750

CLOSING BALANCE(A-B) 49500 -58250 -180000

RIOD AUGUST TO OCTOBER 2010 WHEN IT WILL BE MANUFACTURING
PREPARE A FLEXIBLE BUDGET FOR OVERHEADS ON THE BASIS OF THE FOLLOWING DATA. ASCERTAIN THE OVERHEAD RATES A

VARIABLE OH:
INDIRECT MATERIAL
LABOUR
SEMI VARIABLE OH:
ELECTRICITY(40% FIXED AND 60% VARIABLE)
REPAIRS(80% FIXED AND 20% VARIABLE)
FIXED OH:
DEPRECIATION
INSURANCE
SALARIES
TOTAL OH
ESTD. DIRECT LABOUR HOURS

SOLUTION:

PARTICULARS 50% CAPACITY 60% CAPACITY

VARIABLE OH:
INDIRECT MATERIAL 5000
LABOUR 15000
ELECTRICITY(60%)
REPAIRS(20%)
FIXED OH:
DEPRECIATION
INSURANCE
SALARIES
AIN THE OVERHEAD RATES AT 50% AND 60% CAPACITY

AT 60% CAPACITY
6000
18000

30000
3000
60 5000
16500
4500
15000 60 15000
93000 50
186000

60 6000
50 ?
60% CAPACITY

6000
18000
ABC CO LTD. MNF 2 PRODUCTS X AND Y. AN ESTD. OF THE NUMBER OF UNITS TO BE SOLD IN THE FIRST 7 MONTHS OF 1992 A

MONTH X Y
JAN 5000 14000
FEB 6000 14000
MAR 8000 12000
APR 10000 10000
MAY 12000 8000
JUN 12000 8000
JUL 10000 8000

IT IS ANTICIPATED THAT THERE WILL BE NO WIP AT THE END OF ANY MONTH AND
[FINISHED UNITS EQUAL TO HALF THE ANTICIPATED SALES FOR THE NEXT MONTH WILL BE STOCK AT THE END OF EACH MON

PREPARE PRODUCTION BUDGET SHOWING NO. OF UTS TO BE MNF EACH MONTH

SOLUTION:
PRODUCTION BUDGET FOR PRODUCT X FOR THE YEAR ENDING 1992

PARTICULARS JAN FEB MAR APR MAY JUN

SALES 5000 6000 8000 10000 12000 12000
(+) CLOSING STOCK 3000 4000 5000 6000 6000 5000
8000 10000 13000 16000 18000 17000
(-) OPENING STOCK 2500 3000 4000 5000 6000 6000
PRODUCTION UTS 5500 7000 9000 11000 12000 11000

PRODUCTION BUDGET FOR PRODUCT Y FOR THE YEAR ENDING 1992

PARTICULARS JAN FEB MAR APR MAY JUN

SALES 14000 14000 12000 10000 8000 8000
(+) CLOSING STOCK 7000 6000 5000 4000 4000 4000
21000 20000 17000 14000 12000 12000
(-) OPENING STOCK 7000 7000 6000 5000 4000 4000
PRODUCTION UTS 14000 13000 11000 9000 8000 8000
IRST 7 MONTHS OF 1992 ARE GIVEN BELOW:

T THE END OF EACH MONTH INCL. DEC 1991]

TOTAL
53000
29000
82000
26500
55500

TOTAL
66000
30000
96000
33000
63000
 THE FOLLOWING INFORMATION HAS BEEN MADE AVAILABLE FROM THE ACCOUNTING RECORDS OF PAYMENT OF PRECISIO
2019 ( AND OF ONLY SALES FOR JAN 2020). IN RESPECT OF FISHPLATES X PRODUCED

(I) THE UNITS TO BE SOLD IN DIFFERENT MONTHS ARE:

JUL 2200
AUG 2200
SEP 3400
OCT 3800
NOV 5000
DEC 4600
JAN 4000

(II) NO WIP AT END OF MONTH

(III) CLOSING STOCK = 1/2 SALES OF NEXT MONTH(INCLUDING JUN 2019)

SOLUTION:

PARTICULARS JUL AUG SEP OCT NOV DEC TOTAL

SALES 2200 2200 3400 3800 5000 4600 21200
(+) CLOSING STOCK 1100 1700 1900 2500 2300 2000 11500
3300 3900 5300 6300 7300 6600 32700
(-) OPENING STOCK 1100 1100 1700 1900 2500 2300 10600
PRODUCTION UTS 2200 2800 3600 4400 4800 4300 22100
DS OF PAYMENT OF PRECISION TOOLS LTD. FOR THE LAST SIX MONTHS OF
OF FISHPLATES X PRODUCED BY IT.
PARTICULARS S T TOTAL
SALES 20000 50000 70000
(+) CLOSING STOCK 5000 10000 15000
25000 60000 85000
(-) OPENING STOCK 4000 6000 10000
PRODUCTION UTS 21000 54000 75000
QUICK PRODUCTS LTD. SELLS TWO PRODUCTS X AND Y IN TWO DIVISIONS NORTH AND SOUTH. THE FOLLOWING WERE THE B
BUDGET ACTUAL
NORTH SOUTH NORTH SOUTH
UTS RS/ UNIT UTS RS/UNIT UTS RS/UNIT UTS RS/UNIT
X 500 180 300 180 600 180 400 180
Y 300 430 200 430 200 430 150 430

FOR THE YEAR 2000, THE BOARD OF DIRECTORS HAS APPROVED THE PROPOSAL OF SALES DEPT TO INCREASE THE PRICE OF X
ESTMATES FROM DIVISIONAL MANAGERS ARE AS FOLLOWS:

NORTH: X' 800 UNITS Y' 500 UNITS

SOUTH: X' 600 UNITS Y' 300 UNITS

AN INTENSIVE ADVERTISING CAMPAIGN PROPOSED BY ADVERTISING CONSULTANTS IS EXPECTED TO RESULT IN ADDITIONA

ESTIMATED SALES. PREPARE SALES BUDGET FOR YEAR 2000 AND PRESENT IT TOGETHER WITH BUDGETED AND ACTUAL SAL

SOLUTION:

PARTICULARS BUDGET SALES(2000) BUDGET SALES(1999) ACTUAL SALES(1999)

UTS PRICE AMOUNT UTS PRICE AMOUNT UTS PRICE
NORTH
X 960 200 192000 500 180 90000 600 180
Y 360 400 144000 300 430 129000 200 430
SOUTH
X 720 200 144000 300 180 54000 400 180
Y 360 400 144000 200 430 86000 150 430
TOTAL 2400 1200 624000 1300 1220 359000 1350 1220
FOLLOWING WERE THE BUDGETED AND ACTUAL SALES FOR YEAR 1999

NCREASE THE PRICE OF X TO RS. 200 AND DECREASE PRICE OF Y TO 400. SALES

TO RESULT IN ADDITIONAL SALES OF 20% OF EACH PRODUCT IN EACH DIVISION OVER THE
DGETED AND ACTUAL SALES FOR 1999.

UAL SALES(1999)
AMOUNT

108000
86000

72000
64500
330500
MALAR LTD. SELLS TWO PRODUCTS A AND B WHICH ARE PRODUCED IN ITS SPECIAL PRODUCT DIVISION. SALES FOR THE YEAR

1ST QTR 2ND QTR 3RD QTR 4th QTR

A 10000 12000 13000 15000
B 5000 4500 4000 3800

THE SELLING PRICE WERE RS. 20/UNIT AND RS.50/UNIT RESPECTIVELY FOR A AND B. AVG. SALES RETURNS
ARE 5% OF SALES AND THE DISCOUNTS AND BAD DEBTS AMOUNT TO 4% OF TOTAL SALES.

PREPARE SALES BUDGET FOR THE YEAR 2000.

IVISION. SALES FOR THE YEAR 2000 WERE PLANNED AS FOLLOWS: