5. Prepare the cash budget of Khan LLC, for April to June 2015 from the following information. 1. Estimated Sales, Purchases and expenses are as follows:- January February March April May June OMR OMR OMR OMR OMR OMR Sales 200,000.000 400,000.000 600,000.000 800,000.000 1,000,000.000 1,200,000.000 Purchases 152,000.000 306,000.000 460,000.000 608,000.000 756,000.000 904,000.000 24,000.000 30,000.000 30,000.000 40,000.000 30,000.000 50,000.000 72,000.000 80,000.000 100,000.000 Wages 36,000.000 48,000.000 60,000.000 Admin -Expenses 50,000.000 60,000.000 70,000.000 Selling & Dust. Exp 70,000.000 90,000.000 110,000.000 2. Cash sale are 20% of total sales. 3. 50% of credit sales are collected within one month and the balance in two months 4. Cash purchases are 25% of Total purchases. 5. 50% of credit purchases are paid within one month and the balance in two months 6. Commission on sales -10% 7. The time lag in the payments of wages is one third (1/3) of the month and that of Admin. Expenses one month. 8. Admin Expenses for each month include deprecation amounting to OMR.10,000. 9. 12% OMR.200,000. Debentures of OMR.10 each were issued on 1* jan.( Half yearly interest deu on 30th June & 31* December ) 10. 36,000 Equity share of OMR.10 each were issued on 1* May at 5% premium. 11. Cash balance at the end of March. OMR.400,000. Required: Prepare a monthly Cash budget for Khan LLC for April to June 2015

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Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.