Illustration 6: From the following data prepare a cash budget according to Adjusted Profit & Loss method and Budget Balance Sheet Balance Sheet as on 31" December 2015 Liabilities Amount Assets Amount Share Capital 50.000 Premises 25.000 General Reserve 10.000 Machinery 12.500 Profit & Loss AC 5.000 Debtors 20.000 Creditors 25,000 Closing Stock 10,000 Bills Payable 5.000Bs Receivable 2.500 Outstanding Rent 1,000 Prepaid Commission 500 Bank 25.500 96.000 Projected Trading & Profit & Loss A/c for the year ending 31.12.2015 Particulars Amount Particulars Amount To Opening Stock 10,000 By Sales 1,00,000 To Purchase 75,000 By Closing Stock 7.500 To Octral 1.000 To Gross Profit 21.500 1.07 500 1,07,500 To interest 1.500 By Gross Profit bid 21,500 To Salaries 3,000 By Sundry Receipes 2,500 To Depreciation 3.750 (10% on Premises and Machinery) To Rent 3,000 - Os 1,000 (Previous year) O/S 2.000 (CY) 500 2.500 To Commission 1,500 (+) Prepaid 500 2.000 (Previous Year) To Office Expenses 1.000 To Advertisement Expenses 500 To Net Profit Cla 9.750 24,000 24 000 S78 5,000 To Dividend To Additions to Reserves To Balance Cid 4,000 By Balance of Profit (Last year) 2.000 By Net Profitbild 8.750 14.750 9.750 14.750 Closing balance of Certain items: Share Capital 260,000 10% Debentures 315,000 Creditors 20,000 Debtors 30.000 Bills Payable 26.000 Bills Receivable 22.000 Furniture 37,500 Plant 25,000 (both these assets are purchased at the end of the year)