Prepare a Cash Budget from April to June for ABC Co. Ltd.
With the help of following information :
Month Sales (Rs.) Purchases (Rs.) Wages (Rs.)
February 180000 124000 12000
March 192000 144000 14000
April 108000 243000 11000
May 174000 246000 10000
June 126000 26800 15000
b. 50% of the credit sales are realized in the following month sales and remaining 50% sales for in
The second following month.
c. Creditors are paid in the following month of Purchase.
d. Cash at Bank as on 1st April Rs. 25000
Answers
Answer:
Explanation:
In the books of Cash Budget
Particulars April may June
Opening balance 25000 (223000) (581000)
Recipts
Collection from debtors 150000 141000 150000
Total recipts 175000 (82000) (431000)
Payments
Collection from creitors 387000 489000 272800
Wages 11000 10000 15000
Total payments 398000 499000 287800
Balance (223000) (581000) (787000)
workings
Calculation of collection from debtors
Particulars February March April may june
Sales 180000 192000 108000 174000 126000
50% of credit sales 90000 96000 54000 87000 63000
Remaining credit sales 90000 96000 54000 87000
Collection from debtors 150000 141000 150000
Calculation from creditors
Particulars February March April may June
Purchase 124000 144000 243000 246000 26800
Credit purchase 124000 144000 243000 246000
Collection from creditors 387000 489000 272800
Collection from wages
Particulars February March April may June
Wages 12000 14000 11000 10000 15000
Particulars April may June
Opening balance 25000 (223000) (581000)
Recipts
Collection from debtors 150000 141000 150000
Total recipts 175000 (82000) (431000)
Payments
Collection from creitors 387000 489000 272800
Wages 11000 10000 15000
Total payments 398000 499000 287800
Balance (223000) (581000) (787000)
workings
Calculation of collection from debtors
Particulars February March April may june
Sales 180000 192000 108000 174000 126000
50% of credit sales 90000 96000 54000 87000 63000
Remaining credit sales 90000 96000 54000 87000
Collection from debtors 150000 141000 150000
Calculation from creditors
Particulars February March April may June
Purchase 124000 144000 243000 246000 26800
Credit purchase 124000 144000 243000 246000
Collection from creditors 387000 489000 272800
Collection from wages
Particulars February March April may June
Wages 12000 14000 11000 10000 15000
Answer:
Cash Budget from April to June for ABC Co. Ltd
Receipts
Opening Balance 25000 53000 -51000
Amount Realised from Debtors 186000 150000 141000
Total Receipts 211000 203000 90000
Payments
Purchases 144000 243000 246000
Wages 14000 11000 10000
Total Payments 158000 254000 256000
Closing Balance 53000 -51000 -166000
Explanation:
50% of the credit sales are realized in the following month sales and remaining 50% sales for in the second following month
Creditors are paid in the following month of Purchase.
Wages paid on the 1st of the the following month