Question

Each question carries 15 marks.
29. Infotech Ltd. Commences business on 1st April 2011 and deposits Rs. 1,00,000 in the Global Trust
Bank. The sum deposited would not be sufficient to finance its operations over a period of four
months. As a company secretary, you are asked to prepare a cash budget from 1st April 2011 to
31st July, 2011 to ascertain the monthly overdraft limits to seek from the company's bankers.
Requisite data is as under:
(i) Sales are made to one distributor only on 30 days terms, 2% discount cheques are received
on the first date of the following due date
(ii) Furniture purchases for Rs. 10,000 preferred to be made in April 2011
(iii) Budget figures are :
Particulars
April
May
June
July
Purchases
50,000
40,000
30,000
40,000
Wages
40.000
50,000
40,000
40,000
Cash expenses
4,000
5,000
4,000
4,000
Sales
60,000
70,000
S0,000
80,000
All purchases are made on net 30 days terms and cheques are posted to creditors on the last day of
the month due.​

Answer 1

Answer:

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