Question

(H) Cash Budget
33. XYZ Company wishes to arrange O.D. facilities with its bankers during the period April - June, when it will be manufacturing mostly for stock.
(i) Prepare cash budget for the above period from the following data.
Months Sales Purchases Wages
Rs. Rs. Rs.
February. 1.80,000. 1,24,800. 12,000
March. 1,92,000. 1,44,000. 14,000
April. 1,08.000. 2,43,000. 11.000
May 1.74.000 2,46,000 10,000
June. 1.26.000. 2,68,000. 15.000
(ii) 50% of credit sales is realised in the month following the sale and the other 50% in the second month following. Creditors are paid in the month following the month of purchase.
(ii) Wages are paid at the end of the respective month.
(iv) Cash at bank - Ist April - Rs. 25,000. ​

Answer 1

Answer:

50+50=100

April ‐ Rs. 25000