Cash Budget

Q. From the flowing particulars make out a Cash Budget of Chanakya Limited from
October to December:
Months Sales Purchases Wages &
Expenses
July (Actual) 3,00,000 1,00,000 60,000
August (Actual) 3,50,000 1,50,000 70,000
September (Actual) 4,00,000 2,00,000 64,000
October (Budgeted) 6,00,000 3,00,000 80,000
November (Budgeted) 4,50,000 2,50,000 72,000
December (budgeted) 5,00,000 2,00,000 60,000
Other Information: -
a) Credit allowed to customers for 2 months and from creditors 1 month.
b) Lag in payment of wages and expenses 1\4 month.
c) Advance tax is to be paid in November Rs. 25,000.
d) Insurance @ Rs. 5,000 payable in every month which is not included in the above
'Wages and Expenses'.
e) Machinery purchased in December amounted to Rs. 1,50,000.
f) 10% sales and purchases are made for cash
g) selling commission is payable @ 5% on sales payable in the third month from the
month of sales.
h) The Bank Balance on 1st October is Rs. 1,00,000.