Q No 5 The opening cash balance on 1- Jan was expected to be Rs 30.000 The sales budget was as fo...

Q No 5 The opening cash balance on 1- Jan was expected to be Rs 30.000 The sales budget was as follows November Rs. 80.000 December 90.000 January 75,000 February 75000 March 80000 Analysis of records shows that debtors settle according to the following pattern: 60% within the month of sales, 25% the month following, 15% the month following Extracts from the purchases budget were as follows: December Rs.60000 January 55000 February 45000 March 55000 All purchases are on credit and experience shows that 90% are settled in the month of purchases and the balance settled the month after Wages are Rs. 15000 per month and overheads of Rs 20.000 per month (including Rs 5000 depreciation) are settled monthly. Taxation of Rs.8000 must be settled in February and company will receive settlement of an insurance claim of Rs 25000 in March Required: Prepare cash budget for Jan, Feb, and March (Total Marks 5)