Q4 M/S Up-to-date Ltd has instructed you to prepare a cash budget for October to December from the following particulars:

a)	Cash and bank balance as on October 1	Rs 20,000
b)	Actual and budgeted sales
	June July August September	60,000 (actual) 65,000 (actual) 70,000 (actual) 75,000 (actual)
	October	80 000 (budgeted)
	November December	82 000 (budgeted) 89,000 (budgeted)
c)	Purchases-actual and budgeted
	June	36,000 (actual) 40,000 (actual)
	August	48,000 (actual)
	September	44,000 (actual)
	October	48,000 (budgeted)
	November	40,000 (budgeted)
	December	50,000 (budgeted)
d)	Wages and other expenses- actual and budgeted.
	Months Wages	Expenses
	August (actual) 15,000	5,000
	Sptember (actual) 15,000	6,000
	October (budgeted) 18,000	6,000
	November (budgeted) 18,000 December (budgeted) 20,000	8,000 8 000
e) Other Information:

Advance income tax, Rs 5,000 is to be paid In November.

Rs 10,000 has to be spent on plant and equipment in October,

Rs 300 rent is payable in advance every month.

10 per cent of purchases and sales are on cash terms.

Trade creditors are paid in the month following the purchases, which collection from debtors are made 2 months after the date of sales,

Time-lag in payment of wages is ¹/2 month. 75 per cent of expenses are paid in the same month and balance in the following month.

(12 Marks)