April 6,000 May 3,950 June 3,000 1,600 13,050 1.700 13,950 1.800 14,850 9,000 1,000 29,650 20,650 19.600 Particulars opening Balance Add: Receipts Cash Sales Collection from debtors (see nate(11 Advance for sale of vehicles Dividends from Investments Total (A+B) Less: Payments Materials Wages (see note2) overheads Instalment of Plant & Machinery Preference dividend Total (C) Closing Balance (A+B-C) 9,600 3,150 1.950 2,000 - 9,000 3.500 2,100 2,000 - 9.200 3.900 2.250 2.000 10,000 27.350 2,300 16.700 3.950 16,600 3,000 May June Working Notes: (1) Computation of Collection from Debtors (Amount in ) Month Total Sales Credit Sales Feb Mar Feb 14,000 12,600 6,300 Mar 15,000 36 13,500 Apr 16.000 14,400 May . 17,000 15,300 Apr 6,300 6.750 6.750 7,200 036 7,200 7,650 13.050 13,950 14,850 (II) Wages payment in each month is to be taken as three-fourths of the current month plus one-fourth of the previous month. Illustration 7 XYZ Ltd. produces two products, X and Y. and operates three sales divisions for sale of their products, Prepare a sales budget for six months ended 30/06/2016 from the following information. Budgeted sales for six months ended 31/12/2015: Divn, 1,600 @ 10 Product X Divn. 11 2,400 @ 10 4,800 @9 Divn. III 2.400 @ 10 2,000 @ 9 Product Y 800 @9 Actual sales during the same period: Product X Product Y 2,000 @10 400 @ 39 3.200 @10 4,000 @ 9 2,800 @310 1,600 @ 9 In the management meeting, following decisions have been taken: (i) The price of product X should be increased by 1 as there is a high demand for product X. () Product Y is not selling at the expected rate as this product has been over-priced. However, if the selling price is reduced by 1, it is expected that the market would pick up. Therefore, the divisional sales managers have made the following estimates: Percentage increase over previous budget (%) Product Divn. Divn. Il Divn. III Product x 20% 30% 10% Product Y 5% 10% 8%