abc company ltd has given the following particulars you are required to prepare a ca 620439

ABC Company Ltd has given the following particulars. You are required to prepare a Cash Budget for the 3 months that is ending on 31 December 1994:

Months	Sales Rs.	Materials Rs.	Wages Rs.	Overhaeds Rs.
August	20,000	10,200	3,800	1,900
September	21,000	10,000	3,800	2,100
October	23,000	9,800	4,000	2,300
November	25,000	10,000	4,200	2,400
December	30,000	10,800	4,500	2,500

1. Credit terms are:

Sales/Debtors—10% Sales are on cash basis. 50% of the Credit Sales are collected next month and the balance in the following month.

Creditors:	Materials	2 months
	Wages	1/2 month
	Overheads	1/5 month

1. Cash Balance on 1 October 1994 is expected to be Rs. 8,000.
2. A machinery will be installed in August 1992 at a cost of Rs. 1,00,000. The monthly instalment of Rs. 5,000 is payable from October onwards.1,900
3. A Dividend at 10% on preference Share Capital of Rs, 3,00,000 will be paid on 1 December 1994.
4. Advance to be received for the sale of vehicle is Rs. 20,000 in December.
5. Income Tax (advance) to be paid in December—Rs. 5,000.