CASH MANAGEMENT

CASH IS THE MOST LIQUID ASSET , WHICH IS VERY IMPORTANT FOR SOLVENCY OF
CASH IS CONSIDERED AS LIFE BLOOD OF BUSINESS
CASH MANAGEMENT IS CONCERNED WITH
ESTIMATE CASH INFLOWS
MANAGE CASH OUTFLOWS
HANDLE CASH SURPLUS AND SHORTAGE
REPAYMENT /INVEST CASH SURPLUS
CASH MANAGEMENT INCLUDES CASH BUDGET
RECEIPTS AND PAYMENTS
FORMAT OF CASH BUDGET
CASH BUDGET FOR THE PERIOD ENDING -----

OP BAL
ADD CASH RECEIPTS
CASH SALES
CASH FROM DEBTORS
SALE OF INVESTMENT/FIXED ASSETS
LOAN TAKEN
INTEREST /DIVIDEND RECEIVED
ISSUES OF SHARES / DEBENTURES
TOTAL [A]
PAYMENTS
CASH PURCHASES
CASH PAID CREDITORS
EXPENSES PAID
LOAN REPAID
TAX PAID
INTEREST ON LOAN PAID
PURCHASE OF FIXED ASSETS / INVESTMENT ****
TOTAL [B]
CLOSING BALANCE [A-B]

Q1 PREPARE CASH BUDGET OF A COMPANY FOR APRIL, MAY AND JUNE 2020
MONTH 2020 SALES [RS] PURCHASES [RS] WAGES
JAN 80000 45000
FEB 80000 40000
MAR 75000 42000
APR 90000 50000
MAY 85000 45000
JUNE 80000 35000
OTHER INFORMATION
1] 10% PURCHASES IN CASH AND 20% SALES IN CASH
2] AVG COLLECTON PERIOD 1/2 MONTH AND PAYMENT CREDITORS 1 M
3] WAGES PAID 1/2 MONTH AND RENT RS 500 P.M
 4] CASH BALANCE ON 01-04 RS 15000 SAME TO BE MAINTAINED EVERY
IN FIXED DEPOSITS

ANS CASH BUDGET FOR THE MONTH OF APRIL , MAY AND JUNE
PARTICULARS
OPENING CASH BALANCE
ADD CASH RECEIPTS
CASH SALES [20% ON SALES]
CASH FROM DEBTORS [W.NOTE]
TOTAL [A]
PAYMENTS
CASH PURCHASE
PAYMENT TO CREDITORS
WAGES
EXPENSES
RENT
FIXED DEPOSITS
CLOSING BALANCE IN CASH
TOTAL [B]

WORKING NOTE
COLLECTION FROM DEBTORS
SALES M A
75000 90000
LESS CASH SALES [20%] 15000 18000
CREDIT SALES 60000 72000
RECEIPT M 30000
APRIL 30000 36000
MAY 36000
JUNE
JULY

Q2 PREPARE CASH BUDGET FOR THREE MONTHS ENDING 30-06-2020

MONTH SLAES MATERIAL WAGES OVERHEADS
FEB 140000 96000 30000 17000
MAR 150000 90000 30000 19000
APR 160000 92000 32000 20000
MAY 170000 100000 36000 22000
JUNE 180000 104000 40000 23000
1] CREDIT TERMS SALES 10% CASH , 50% CREDIT SALES ARE COLLECTED IN NEXT MONTH A
 2] CREDITORS 2 MONTH , WAGEA 1/4 MONTH, OVERHEADS 1/2 MONTH
3] CASH BALANCE AS ON 01-04-2020 RS 60000
4] PLANT PURCHASED IN APRIL WITH MONTHLY INSTALLMENT RS 12000
5] DIVIDEND RS 60000 PAID IN JUNE
6] ADVANCE RS 90000 RECEIVED IN JUNE AND TAX RS 20000 PAID IN JUNE
7 ] DIVIDEND RS 10000 RECEIVED IN JUNE

ANS CASH BUDGET FOR THREE MONTHS APRIL , MAY AND JUNE 2020
PARTICULARS APRIL[RS]
OPENING BALANCE 60000
RECEIPTS
CASH SALES [10%] 16000
CASH FROM DEBTORS [W.NOTE] 130500
ADVANCE RECD _____
DIVIDEND RECD ____

TOTAL [A] 206500

PAYMENTS
PAYMENT TO CREDITORS 96000
WAGES PAID 30500
OVERHEADSPAID 19500
PAYMENT TO PLANT PURCHASED 12000
DIVIDEND PAID ____
TAX PAID ____
TOTAL [B] 158000
CLOSING BALANCE [A-B] 48500

COLLECTION FROM DEBTORS

FEB MAR APR
SALES 140000 150000 160000
LESS CASH SALES 10% 14000 15000 16000
CR SALES 126000 135000 144000
COLLECTION 63000 63000
67500

130500

PAYMENT TO WAGES APR

MAR 30000*3/4 22500
APRIL 32000*1/4 *3/4 8000
MAY 36000*1/4 *3/4
JUNE 40000*1/4
30500
 0VERHEADS MAR 19000*1/2 9500
APR 20000*12 10000
MAY 22000*1/2
JUNE 23000*1/2
19500
Q3 A LTD PREPAING BUDGET FOR THE MONTH OF JAN, FEB AND MARCH BANKERS ASSISTED FO
MONTH SALES PURCHASES WAGES
NOV 120000 83000 9800
DEC 128000 96000 10000
JAN 72000 162000 8000
FEB 116000 164000 4000
MAR 84000 179000 10400
OPENING CASH BALANCE RS 17200
DEBTORS COLLECTION PERIOD 50% IN THE NEXTMONTH 50% IN THE FOLLOWING
PAYMENT TO CREDITORS ONE MONTH CREDIT
WAGES PAID ON THE SAME MONTH

ANS CASH BUDGET FOR THE MONTH OF JAN , FEB AND MARCH
PARTICULARS JAN [RS]
OPENING CASH BALANCE 17200
COLLECTION FROM DEBTORS 50% 60000
50% 64000
TOTAL [A] 141200
PAYMENT
CREDITORS 96000
WAGES 8000
TOTAL [B] 104000
CLOSING BALANCE [A-B] 37200

Q4 M/S ABC STORES HAS THE FOLLOWING BALANCESHEET AS ON 31-03-2018

LIABLITIES RS ASSETS
CAPITAL 106000 CASH
O/S EXPENSES 17000 STOCK
DEBTORS
FIXED ASSETS
123000

SALES AND EXPENSES

MONTH SALES EXPENSES
APRIL 30000 3000
MAY 52000 3500
JUNE 50000 3500
JULY 75000 4000
 AUGUST 90000 4000
SEPT 35000 3000

OTHER EXPENSES RENT RS 1000 P.M SALARIES RS 500 P.M

SALES 80% CREDIT 20% CASH
DEBTORS 70% COLLECTED AFTER ONE MONTH REMAINING IN NEXT M
GROSS MARGIN 70% PURCHASES EQUAL TO NEXT MONTH SALES PAYM
DEBTORS INCLUDES RS 20000 CREDIT SALEES IN MARCH 2018
CASH IN HAND RS 10000 ALL THE MONTH DEFICIENCY TO MET BY SHOR
TO BE INVESTED
PREPARE CASH BUDGET FROM APRIL TO AUGUST
ANS M/S ABC STORES
CASH BUDGET FROM APRIL TO AUGUST 2018
PARTICULARS APRIL MAY
OPENING BALANCE 26500 10000
RECEIPTS
CASH SALES [20%] 6000 10400
CASH FROM DEBTORS [W.NOTE] 14000 22800
SHORT TERM LOAN 900
TOTAL [A] 47400 43200
PAYMENTS
PURCHASEES [CREDITORS] 15600 15000
RENT 1000 1000
SALARIES 500 500
EXPENSES 3000 3500
COMMISSION [1% ON SALES] 300 520
O/S EXPENSES 17000 ___
INVESTMENT IN SECURITIES ___ 12680
TOTAL B 37400 33200
CLOSING BALANCE [A-B] 10000 10000
TOTAL 47400 43200

W.NOTE COLLECTION FROM DEBTORS

AP MAY JU
SALES 30000 52000 50000
LESS CASH SALES [20%] 6000 10400 10000
CREDIT SALES 24000 41600 40000
20000*70% 70% 14000 16800 29120
20000*30% 30% 6000 7200
14000 22800 36320

PURCHASES [30%] ON SALES APRIL 30% 30000 9000

MAY 30% 52000 15600
JUNE 30%50000 15000
JULY 30%75000 22500
AUGUST 30% 90000 27000
SEPT 30% 35000 10500
MPORTANT FOR SOLVENCY OF THE FIRM

D ENDING -----
JAN FEB MAR
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ND JUNE 2020
S] PURCHASES [RS] WAGES [RS] EXPENSES [RS
20000 5000
18000 6000
22000 6000
24000 6000
20000 6000
18000 5000

LES IN CASH
AND PAYMENT CREDITORS 1 MONTH
ME TO BE MAINTAINED EVERY MONTH EXCESS TO BE PUT

H OF APRIL , MAY AND JUNE

APR [RS] MAY[RS] JUNE[RS]
15000 15000 15000

18000 17000 16000

66000 70000 66000
99000 102000 97000

5000 4500 3500

37800 45000 40500
23000 22000 19000
6000 6000 5000
500 500 500
11700 9000 13500
15000 15000 15000
99000 102000 97000

M J TOTAL
85000 80000
17000 16000
68000 64000

66000
34000 70000
34000 32000 66000
32000

OVERHEADS

COLLECTED IN NEXT MONTH AND BALANCE IN FOLLOWING MONTH

AID IN JUNE

D JUNE 2020
MAY JUNE [RS]
48500 49000

17000 18000
139500 148500
____ 90000
___ 10000

205000 315500

90000 92000
33000 37000
21000 22500
12000 12000
____ 60000
____ 20000
156000 243500
49000 72000

MAY JUN
170000 180000
17000 18000
153000 162000

67500
72000 72000
76500
139500 148500

MAY JUNE

24000
9000 27000
10000
33000 37000
 10000
11000 11000
11500
21000 22500
MARCH BANKERS ASSISTED FOR OVERDRAFT
SES WAGES

NTH 50% IN THE FOLLOWING MONTH

FEB AND MARCH

FEB [RS] MARCH [RS]
37200 [28800]
36000 36000
64000 58000
137200 65200

162000 164000
4000 10400
166000 174400
[28800] [109200]

EET AS ON 31-03-2018
RS
26500
50500
26000
20000
123000

EXPENSES
LARIES RS 500 P.M 1% COMMISSION ON SALES

ONTH REMAINING IN NEXT MONTH

TO NEXT MONTH SALES PAYMENT MADE AGAINST SUPPLY
ES IN MARCH 2018
H DEFICIENCY TO MET BY SHORT TERM LOAN AND SURPLUS

APRIL TO AUGUST

JUNE JULY AUGUST

10000 10000 10000

10000 15000 18000

36320 40480 54000

56320 65480 82000

22500 27000 10500

1000 1000 1000
500 500 500
3500 4000 4000
500 750 900
___ ___ ___
18320 22230 55100
46320 55480 72000
10000 10000 10000
56320 65480 82000

JU AUG
75000 90000
15000 18000
60000 72000
28000 42000
12480 12000
40480 54000