$2.$ Solve both the questions: $(10$ marks each$)$

Prepare a Cash Budget of AR Ltd$.$ for April, May and June $2021$

Months

Sales $($Rs$.)$

Purchases $($Rs$.)$

Wages $($Rs$.)$

Expenses $($Rs$.)$

Jan. $($Actual$)$

$80,000$

$45,000$

$20,000$

$5,000$

Feb.$($Actual$)$

$80,000$

$40,000$

$18,000$

$6,000$

March $($Actual$)$

$75,000$

$42,000$

$22,000$

$6,000$

April $($Budget$)$

$90,000$

$50,000$

$24,000$

$7,000$

May $($Budget$)$

$85,000$

$45,000$

$20,000$

$6,000$

June$($Budget$)$

$80,000$

$35,000$

$18,000$

$5,000$

Additional Information:

$(1)10\%$ of the purchases and $20\%$ of sales are for cash.

$($ii$)$ The average collection period of the company is $(1)/(2)$ month and the credit purchases are paid regularly after one month.

$($i$)$ Wages are paid half monthly and the rent of Rs$.500$ included in expenses is paid monthly and other expenses are paid after one month lag. $($iv$)$ Cash balance on April $1,2021$ is Rs$\mathrm{.}15,000$