Summarised the income and expenditure forecasts for the months of March to August 2009 are given below:

Month Sales Purchases Wages Manufac- Office Selling

(Credit) (Credit) Rs. uring Exps. Exps. Exps.

2009 Rs. Rs. Rs. Rs. Rs.

March 60,000 36,000 9,000 4,000 2,000 4,000 April 62,000 38,000 8,000 3,000 1,500 5,000 May 64,000 33,000 10,000 4,500 2,500 4,500 June 58,000 35,000 8,500 3,500 2,000 3,500 July 56,000 39,000 9,500 4,000 1,000 4,500 August 60,000 34,000 8,000 3,000 1,500 4,500 You are given the following additional informations:

(a) Plant Costing Rs. 16,000 is due for delivery in July 2009 payable 10% on delivery and the balance after three months.

(b) Advance Tax of Rs. 8,000 is payable in March 2009 and June 2009 each.

(c) Period of Credit allowed (i) by suppliers 2 months and (ii) to customers 1 month.

(d) Lag in payment of manufacturing expenses, ½ month.

(e) Lag in payment of all other expenses, 1 month.
You are required to prepare a Cash Budget for the month of May, June and July, 2009 when there was a cash balance of Rs. 8,000.
[Ans.:
May (Rs.) June (Rs.) July (Rs.)
Total Receipts 70,000 79,750 70,750 Total Payments 54,250 67,000 52,350 Closing Balance 15,750 12,750 18,400