Hi,

My name is Jasdev Singh. I want to prepare a cash budget. Can you please help me for preparing the cash budget. Details are given below:

Months Total sale Materials Wages Overhads

Jan 20000 20000 4000 4000
Feb 22000 14000 4400 4200
Mar 28000 14000 4600 4300
Apr 36000 22000 4600 4500

Cash balance on 1st Jan was Rs. 10000. A new machinery is to be installed at Rs. 20000 on credit, to be paid by two equal installments in March and April.
Sales commission @ 5% on total sales is to paid with in a month following actual sales Rs 10000 being the amount on 2nd call may be received in March. Share premium amounting to Rs. 2000 is also obtainable with the 2nd call.

Period of credit allowed by supplier: 2 months
Period of credit allowed to customer: 1 month
Delay in payment of overhead: 1 month
Delay in payment of wages: 1/2 month

Assume cash sales to be 50% of total sales.

We are waiting for your prompt reply.
Thanks in advance.

Regards,
Jasdev Singh

Greetings and WELCOME to the site, singhja2008!

I moved your question out of Introductions to this forum topic area so that it will be more likely to be noticed and addressed by those who are best able to answer it. Your question will get noticed much more here.

Introductions is for people to introduce themselves only, and we try to not ask questions there. We would appreciate it if you would return to Introductions sometime to tell us a little bit about yourself, if you would be willing to do that.

Thanks!

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