АCTIVITY From the following information obtained from the books of Maruti LLC, prepare cash budget for the quarter ending 30 June 2020. Sales (OMR) 80,000 Purchase (OMR) Wages (OMR) 20,000 18,000 22,000 24,000 Expenses (OMR) 5,000 Month January February March 45,000 40,000 42,000 80,000 80,000 90,000 6,000 6,000 April May 50,000 45,000 35,000 7,000 85,000 80,000 20,000 18,000 6,000 June 5,000 Special information 1. Advance payment of income tax in May OMR 4,000. 2. Purchase of plant in April OMR 10,000 Rent OMR 300 payable each month 4. 10% of purchase and sales are in cash terms 5. Credit purchases are paid after one month and credit sales are collected after 2 months 6. Time lag in wages and expenses ½ month 7. Cash and bank balance on April 1s OMR 13,000
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.
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