from the following information prepare a cash budget of db ltd for 4 months that end 620403

From the following information, prepare a Cash Budget of DB Ltd for 4 months that ended on 31 December 2006:

Months	Sales Rs.	Purchases Rs.	Wages Rs.	Other Expenses Rs.
July	60,000	40,000	8,000	9,000
August	90,000	60,000	10,500	8,850
September	75,000	50,000	17,500	8,000
October	90,000	60,000	17,100	7,850
November	1,05,000	70,000	12,000	7,300
December	1,20,000	80,000	12,000	7,050

Additional Information:

1. Cash in hand on 01 September 2006 – Rs. 47,000.
2. It is expected that 50% of the sales will be in cash and 25% of the purchases will be made on credit.
3. 75% of the Credit Sales is realized 1 month after the sales, 20% realized is after 2 months of sale and the balance is bad debt.
4. 70% of the credit purchases is paid after 1 month and the remaining 30% is paid after 2 months of purchase.
5. Wages are paid on the 3rd day of the following month.
6. Other Expenses include a depreciation of Rs. 2,000 p.m.
7. Commission @ 5% on the total sales payable after 1 month is not included in the other expenses.
8. Machinery is purchased @ Rs. 60,000 and the payment is to be made in September.
9. A Dividend on investments of Rs. 10,250 to be received in November.
10. The company has 10% Debentures of Rs. 1,00,000. The interest is payable quarterly in March, June, September and December.
11. In case of deficit in cash in any month, the company can arrange an overdraft from the bank for that month, and such overdraft is to be repaid as early as possible out of the Surplus Cash of the subsequent month. Ignore the interest on the overdraft.