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 note (1) 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 Working Notes: (1) Computation of Collection from Debtors (Amount in ) Month Feb Mar Apr May June Feb Total Sales Credit Sales 14,000 12,600 15,000 13,500 6,300 6,300 Mar 6,750 6,750 36 16,000 14,400 7,200 7,200 Apr May 17,000 15,300 7,650 14,850 13,050 13,950 (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: Product X Divn. 1,600 @ 10 800 @9 Divn. II 2,400 @ 10 4,800 @19 Divn. III 2,400 @ 10 2,000 @ 39 Product Y Actual sales during the same period: Product X Product Y 2,000 @ 10 400 @ 39 3,200 @ 10 4,000 @ 39 2,800 @10 1,600 @9 In the management meeting, following decisions have been taken: (0) The price of product X should be increased by 1 as there is a high demand for product X. (i) 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. 11 Divn. III Product x 20% 30% 10% Product Y 5% 10% 8%