- Miscellaneous expenses 4,000 3,000 6,000 Income tax 15.000 Total payments (2) 58,700 59,900 78,100 Closing balance of cash (1-2) 7,550 700 35.200 Working notes: 1. Out of total sales, 10% are cash sales. Balance 90% is credit sales. In any given mon 50% of credit sale of the previous two months are collected (See W.N.). 2. In any given month, 90% of the wages the same month and 10% of previous month's wages are paid. 3. Working notes for collection of cash from debtors and sales Particulars February March May June (Rs.) Rs Rs.) (Rs.) (Rs.) Total sales 60,000 65.000 40.000 58.000 44.000 Less: Cash sales (10%) 6,000 6.500 4.000 5.800 4.400 Credit sales 54,000 58.500 36,000 52.200 39.600 Collection in 1 month after credit sales 27.000 29.250 18.000 19.800 Collection in 201 month after credit sales 27.000 29.250 18.000 April +44 Total credit 56,250 47250 37,800 and present the When the functional budgets have been completed, the budget committee will prepam a master budget for the target of the concern. Accordingly a budget which is prepare incorporating the summaries of all functional budgets. It comprises of budgeted prof and loss account, budgeted balance sheet, budgeted production, sales and costs. The ICMA England defines a Master Budget as 'the summary budget incorporating its functional budgets, which is finally approved, adopted and employed'. The master budget represents the activities of a business during a profit plan. This budget is also helpful in coordinating activities of various functional departments. Illustration 10. Pushpack and Co., a glass manufacturing company requires you to calculate the budget for the next year from the foll e following information: Toughened glass Rs. 2.00,000 Bent toughened glass Rs. 3,00,000 Direct material cost 60% of sales match 10 workers @ Rs. 100 per month Factory overheads Indirect labour: Work manager Rs. 300 per month Rs. 200 per month Stores and spares 2% on sales Depreciation on machinery Rs. 6.000 Light and power Rs. 2.000 Repairs and maintenance Rs. 4.000 Other sundries 10% on direct wages Administration, selling and distribution expenses Rs. 7,000 per year. Direct wages Foreman