600 Particulars June July Aug Sept Oct Nov Dec Sales 11000 10000 11000 12000 13000 14000 15000 1) 50% Cash Sales 5500 5000 5500 6000 6500 7000 7500 2) Credit Sales 5500 5000 5500 6000 6500 7000 Collection from Debtors 3) Commission 5% 550 500 550 650 700 to be paid in next month on total Sales 4) Wages 2000 2000 2200 2300 2300 2400 2400 50% pad in same 1000 1000 1100 1150 1150 1200 1200 50% paid in next 1000 1000 1100 1150 1150 1200 month Total Wages paid 1000 2000 2100 2250 2300 2350 2400 Note: All other expenses, i.e. payment to creditors, production and selling overheads, credit period is given 1 month, i.e. to be paid in the next month, it means June paid in July, July paid to August and so on. Illustration 9 : Prepare a Cash Budget for the 3 months ending 30 June from the following information a) Month Sales Materials Wages Overheads February 140000 96000 30000 17000 March 150000 90000 30000 19000 April 160000 92000 32000 20000 May 170000 100000 36000 22000 June 180000 104000 40000 S19 23000 b) Credit terms are - sales / debtors - 10% sales are on cash. 50% of the credit sales are collected next month and the balance in the following month c) Creditors. Materials 2 months Wages month Overheads month d) Cash and Bank balance on 16 April is expected to be 760,000. e) Plant & Machinery will be installed in February at a cost of 2960000. The monthly installments of 12000 are payable from April onwards. 1) Dividends @ 5% on preference share capital of 1200000 will be paid on 1" June. g) Advance to be received for sale of vehicles 780,000 in June. h) Dividends from investments amounting to +20,000 are expected to be received in June. 1) Income tax (advance) to be paid in June is 215000