Sales (credit)

Months Purchase (credit) (₹)

(₹)

March 60,000 36,000

April 62,000 38,000
May 64,000 33,000
June 58,000 35,000
July 56,000 39,000
August 60,000 34,000

You are given the following further information :

(a) Plant costing 16,000 is due for delivery in July payable 10% on deliver
(b) Advance tax of 8,000 is payable in March and June each.
(c) Creditors allow 2 months credit and debetors are paying one month la

Prepare a Cash Budget for the months May to July.

Particulars

Opening Balance
Receipts:
Collection from Debtors
Total
Payments:
Payment to Creditors
Wages
Manufacturing Expenses
Office Expenses
Selling Expenses
Payment of Advance Tax
Payment for Plant
Total
Closing Balance
 Manufacturing Office Expenses
Wages (₹)
Expenses (₹) (₹)

9,000 3,500 2,000

8,000 3,750 1,500
10,000 4,000 2,500
8,500 3,750 2,000
9,500 5,000 1,000
8,000 5,200 1,500

ayable 10% on delivery and the balance after 3 months.

une each.
e paying one month late. Opening Balance of Cash 8000, lag of one month in expenses

Cash Budget

May June July

8,000 15,750 12,750

62,000 64,000 58,000

70,000 79,750 70,750

36,000 38,000 33,000

8,000 10,000 8,500
3,750 4,000 3,750
1,500 2,500 2,000
5,000 4,500 3,500
- 8,000 -
- - 1,600
54,250 67,000 52,350
15,750 12,750 18,400
 Selling
Expenses (₹)

4,000
5,000
4,500
3,500
3,500
4,500

g of one month in expenses