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v B) From the following forecast of income and expenditure (in Rs.) prepare a Cash Budget for the three months ending on June, 2021: Month
v
B) From the following forecast of income and expenditure (in Rs.) prepare a Cash Budget for the three months ending on June, 2021: Month Sales Purchase February 1,20,000 84,000 March 1,30,000 1,00,000 April 80,000 1,04,000 May 1,16,000 1,06,000 June 88,000 80,000 Additional Information: Wages 10,000 12,000 8,000 10,000 8,000 Misc. 7,000 8,000 6,000 12,000 6,000 i) Sales: 20% realized in the month of sale, discount allowed 2%, balance realized equally in two subsequent months. ii) Purchases: These are paid in the month following the month of supply. iii) Wages: 25% paid in arrears following month. iv) Misc. Expenses: Paid a month in arrears v) Rent : Rs.1,000 per month paid quarterly in advance due in April vi) Income Tax: First instalment of advance tax Rs. 25,000 due on or before 15" June to be paid within the month. vii) Income from the investment: Rs.5,000 received quarterly in April, July and so on viii) Cash in Hand Rs. 5,000 on April 1, 2021. [3+5=8] Step by Step Solution
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