From the following information prepare a cash budget from 1st January 2009 to 30th June, 2009. The cash balance on 1st January, 2009 is Rs. 1,45,000.

Month Sales Materials Wages Distribu- Production Admin.

(Rs.) (Rs.) tion overhead overhead Over2008 (Rs.) (Rs.) (Rs.) head January 1,44,000 50,000 20,000 8,000 12,000 3,000 February 1,94,000 62,000 24,200 10,000 12,600 3,400 March 1,72,000 51,000 21,200 11,000 12,000 4,000 April 1,77,000 61,200 50,000 13,400 13,000 4,400 May 2,05,000 74,000 44,000 17,000 16,000 5,000 June 2,17,000 77,600 46,000 18,000 16,400 5,000 Half of the sales is cash sales. Assets are to be required in the months of February and April. Arrangement is to be made for the payment of Rs. 16,000 and Rs. 50,000 respectively for the same. An application has been given to the banker

‘Bank of Commerce’ for the grant of a loan of Rs. 60,000 and it is expected that it will be received in the month of May. A dividend of Rs. 70,000 is to be paid in the month of June. Debtors are allowed one month’s credit. Sales commission @ 3% on sales is to be paid. Creditors and overheads are to be paid one month later.

[Ans.: Cash Balance at the end of January February March April May June 1,92,680 2,42,660 3,11,300 3,02,584 4,11,534 3,88,212