Question

A Company wants to prepare cash budget based on the following information. Forecast the cash position for the months of October, November and December. Complete company’s estimate.

iSales (Rs.)
Purchases (Rs.)
Salaries (Rs.)
Other expenses (Rs.)

August
440000
168000
20000
11000

September
260000
520000
74000
16000

October
160000
304000
56000
12000

November
232000
412000
50000
24000

December
172000
320000
56000
12000

Additional Information:
Sales: 40% realized in the month of sales, discount on sales 3% in the same month. Balance realized equally in two subsequent months by calculating on gross sales.
Accounts receivable consists of Rs. 100000, company receives 60% in October, and balance received equally in last two months.
Company paid against Purchases in the month following the month of purchases.
30% of the salaries paid in the month of occurrence and remaining is paid in following month.
Other expenses paid in the month of occurrence.
Rent: Rs 1,000 per month paid quarterly in advance in current year during the month of December.
Income-tax; Installment of advance tax of next year Rs 35,000 due on 15th December.
Cash in hand: Rs 5,000 on September 30.
Company arranges financing in case of deficit, if deficit is below Rs. 200000, company takes loan from bank, if more than Rs. 200000, company issues shares.
Loan installment is due during November at Rs. 8000. ​

Answer 1

Wht is this question

Answer 2

could you please ask in shot it's too long