Prepare a cash budget of Xavier Company Ltd for the month of June, 2020 to July, 2020 (two months) from the detail below:

Estimated sales during 2020

Actual Sales

Rs.

Forecast Sales

Rs.

January

1,000,000

May

1,500,000

February

1,200,000

June

1,600,000

March

1,000,000

July

1,800,000

April

1,200,000

August

2,000,000

1. On an average 20% of sales are on cash. The credit sales are collected as:
2. 80% received in next month
3. 20% received in second next month
4. Purchases amount to 70% of sales. Payment of purchases is made generally in the second month.
5. Wages expenses 10% of sales, paid in same month.
6. Commission on sales is paid at 5% of sales value and payment is made in the same month.
7. Fixed cash expenses per month amount to Rs. 75,000 approximately which includes 20,000 building depreciation.
8. Other items anticipated:

Payment of loanRs. 160,000 (April, 2020)

Sales of old machinery12,500 (May, 2020)

Payment of tax 80,000 (June, 2020)

Purchase of land650,000 (July, 2020)

1. Opening cash balance of June 2020Rs 150,000