The opening cash balance on 1^st Jan was expected to be Rs. 30,000. The sales budget was as follows:

November Rs. 80,000

December 90,000

January 75,000

February 75000

March 80000

Analysis of records shows that debtors settle according to the following pattern: 60% within the month of sales, 25% the month following, 15% the month following.

Extracts from the purchases budget were as follows:

December Rs.60000

January 55000

February 45000

March 55000

All purchases are on credit and experience shows that 90% are settled in the month of purchases and the balance settled the month after.

Wages are Rs.15000 per month and overheads of Rs.20,000 per month (including Rs.5000 depreciation) are settled monthly.

Taxation of Rs.8000 must be settled in February and company will receive settlement of an insurance claim of Rs.25000 in March.

Required: Prepare cash budget for Jan, Feb, and March (Total Marks 5)