For the year ending 30th September, 2010 (Rs.) July Particulars April May June August September Opening 3,00,000 2,65,000 1,34,000 67.000 (15,500) (500) Balance Budgeted Receipts Cash Sales 26,000 50,000 1,00,000 1.25.000 Collection 25,000 50,000 from Debtors (0) 3,00,000 2,65,000 1,69,500 1,17,000 1,09,500 1,74,500 Budgeted Payments Payment to 1,00.000 60,000 60.000 60.000 60.000 Creditors 5.000 17.500 25,000 12.500 10,000 22,500 20,000 25,000 25.000 15,000 25,000 Wages Variable Overheads Fixed Overheads (11) 30,000 30.000 35,000 1,30,500 2,65,000 1,34,500 92,500 1,32,500 1,10,000 67,000 (15,500) (500) 1,10,000 64,500 Closing Balance 0) - (4) u21 Illustration 4 Modern Company wishes to arrange overdraft facilities with its bankers during the period April to June, 2012 when it will be manufacturing mostly for stock. Prepare a cash budget for the above period from the following data indicating the extent of facilities the company will be require at the end of each month. Month Sales Rs. February March April May June July August 1,80,000 1.92.000 1,08,000 1,74,000 1,26,000 1,40,000 1,60,000 Purchase Wages Mfg. Office Selling Rs. Rs. Expenses Expenses Expenses Rs. Rs. Rs. 1,24,000 12,000 3,000 2.000 2.000 1,44,000 14,000 4,000 1.000 4.000 2,43.000 11.000 3.000 1,500 2.000 2,46,000 12,000 4,500 2,000 5.000 2,68,000 15,000 2.500 4.000 2,80,000 17,000 5,500 3,000 4,500 3,00,000 18,000 6,000 3.000 5,000 5.000 (b) Cash on hand 1-4-2012 (estimated) Rs. 25,000. (c) 50% of credit sales are realized in the month following the sale and the remaining 50% in the second month following. Creditors are paid in the month following the month of purchase: (d) Lag in payment of manufacturing expenses y month. (e) Lag in payment of other expenses 1 month