From the following particulars, prepare a cash budget for the period October to December 2009, indicating the extent of the bank facilities the company will require at the end of each month:
|
Month
|
Sales Rs.
|
Purchases Rs.
|
Wages Rs.
|
|
August
|
80,000
|
62,400
|
6,000
|
|
September
|
1,00,000
|
75,000
|
7,000
|
|
October
|
55,000
|
1,20,000
|
5,000
|
|
November
|
90,000
|
1,25,000
|
5,000
|
|
December
|
65,000
|
1,34,000
|
10,000
|
Additional information:
- 50% of credit sales are realized in the month following the sales and the remaining 50% in the second month following.
- Creditors are paid in the month following the month of purchase.
- Cash as bank on 1 October 2009 (estimated) Rs.12,500.