Following is Budgeted Data of R Ltd. Prepare Cash Budget for the quarter ended 31st March 2007. Month Sales Purchases Wages Misc.Exps November’06 1,30,000.00 98,000.00 12,000.00 8,000.00 December’06 1,50,000.00 1,10,000.00 15,000.00 9,000.00 January’07 90,000.00 1,14,000.00 9,000.00 7,000.00 February’07 1,26,000.00 1,16,000.00 12,000.00 14,000.00 March’07 98,000.00 85,000.00 8,000.00 7,000.00 Additional Information: - 1. Cash on Hand as on 1st January 2007 is Rs 5,000/-. Sales: - 20% realized in the month of sale, discount allowed 2% and balance is subsequent 2 months. 2. Purchases are paid for in the following month of supply. 3. Wages are 50% in arrears and paid in subsequent month. 4. Miscellaneous Expenses are paid a month in arrears. 5. Rent of Rs 1,000 per month is paid quarterly in advance. 6. Income Tax is due on 15th March 2007 Rs 21,500/-. 7. Interest on Deposit Receivable from Bank for quarter ended 31st March 2007 is Rs 1,500/-.
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.
Following is Budgeted Data of R Ltd. Prepare
for the quarter ended 31st March 2007.
Month |
Sales |
Purchases |
Wages |
Misc.Exps |
November’06 |
1,30,000.00 |
98,000.00 |
12,000.00 |
8,000.00 |
December’06 |
1,50,000.00 |
1,10,000.00 |
15,000.00 |
9,000.00 |
January’07 |
90,000.00 |
1,14,000.00 |
9,000.00 |
7,000.00 |
February’07 |
1,26,000.00 |
1,16,000.00 |
12,000.00 |
14,000.00 |
March’07 |
98,000.00 |
85,000.00 |
8,000.00 |
7,000.00 |
Additional Information: -
1. Cash on Hand as on 1st January 2007 is Rs 5,000/-.
Sales: - 20% realized in the month of sale, discount allowed 2% and balance is subsequent 2 months.
2. Purchases are paid for in the following month of supply.
3. Wages are 50% in arrears and paid in subsequent month.
4. Miscellaneous Expenses are paid a month in arrears.
5. Rent of Rs 1,000 per month is paid quarterly in advance.
6. Income Tax is due on 15th March 2007 Rs 21,500/-.
7. Interest on Deposit Receivable from Bank for quarter ended 31st March 2007 is Rs 1,500/-.
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