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/-.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 3P: Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December...
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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/-.

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