always remember that the budget is prepared on estimated and not on actual accuracy. 2) The budget programme must be dynamic and continuously with the change business conditions. It cannot be fixed for all the times, as the business circumstances change, the result is also change. 3) Budgetary control is only a tool of management. Sometimes it is believed that the introduction of a budget programme is sufficient to ensure its success. It is necessary that the entire organization must participate enthusiastically in the programme for the realization of budgetary goals. 4) Preparation of budget, it requires a maximum amount of time and efforts. While budgeting is not a major expenditure for a large or medium size organizations, smaller companies may find it difficult to justify the cost involved. Illustration : Case Study: 1) Cash Receipts : The estimated monthly sales for a company is as follows: Month Sales January 8000 February 14000 March 12000 April 20000 May 25000 June 10000 576 Sales are 20% cash and 80% for credit each month. Of the credit sales 70% are collected in the month following and the balance in the second month following. Calculate the amount of cash sales collection from debtors in each month from January to June