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To create the cash budget for April, May, and June 2019, let's break down the information provided and compute the relevant cash inflows and outflows.

### Step 1: Understanding the Data
- **Credit Sales**: Cash from credit sales will be received one month after the sale.
  - April's cash inflow comes from March's credit sales.
  - May's cash inflow comes from April's credit sales.
  - June's cash inflow comes from May's credit sales.

- **Credit Purchases**: Payments for credit purchases will be made two months after the purchase.
  - April's cash outflow relates to February's purchases.
  - May's cash outflow relates to March's purchases.
  - June's cash outflow relates to April's purchases.

- **Office Expenses**: Paid in the same month they occur.

- **Other Adjustments**:
  - Opening cash balance: Rs. 4,000.
  - Dividend receivable in May: Rs. 2,000.
  - Interest payable in June: Rs. 1,500.

### Step 2: Structure of the Cash Budget

| Month    | Opening Balance | Inflows (Sales) | Dividend Receivable | Total Inflows | Outflows (Purchases) | Office Expenses | Interest Payable | Total Outflows | Closing Balance |
|----------|-----------------|-----------------|---------------------|---------------|----------------------|-----------------|------------------|----------------|-----------------|
| April    |                 |                 |                     |               |                      |                 |                  |                |                 |
| May      |                 |                 |                     |               |                      |                 |                  |                |                 |
| June     |                 |                 |                     |               |                      |                 |                  |                |                 |

### Step 3: Cash Inflows
- **April**:
  - Credit Sales received: Rs. 45,000 (from March).
- **May**:
  - Credit Sales received: Rs. 50,000 (from April).
  - Dividend: Rs. 2,000.
- **June**:
  - Credit Sales received: Rs. 50,000 (from May).

### Step 4: Cash Outflows
- **April**:
  - Credit Purchases payment: Rs. 20,000 (from February).
  - Office Expenses: Rs. 8,000.
- **May**:
  - Credit Purchases payment: Rs. 35,000 (from March).
  - Office Expenses: Rs. 6,000.
- **June**:
  - Credit Purchases payment: Rs. 15,000 (from April).
  - Office Expenses: Rs. 7,000.
  - Interest payable: Rs. 1,500.

### Step 5: Calculating the Cash Balances
Using the above information, I'll calculate each month's inflows, outflows, and closing balances. Let me compute that for you.Here is the cash budget for April, May, and June 2019 based on the provided dataHere is the cash budget for April, May, and June 2019 based on the provided 

### **April 2019**
- **Opening Balance**: Rs. 4,000
- **Inflows (Credit Sales)**: Rs. 45,000 (from March)
- **Total Inflows**: Rs. 45,000
- **Outflows**:
  - Credit Purchases (from February): Rs. 20,000
  - Office Expenses: Rs. 8,000
- **Total Outflows**: Rs. 28,000
- **Closing Balance**: Rs. 21,000

### **May 2019**
- **Opening Balance**: Rs. 21,000
- **Inflows**:
  - Credit Sales (from April): Rs. 50,000
  - Dividend: Rs. 2,000
- **Total Inflows**: Rs. 52,000
- **Outflows**:
  - Credit Purchases (from March): Rs. 35,000
  - Office Expenses: Rs. 6,000
- **Total Outflows**: Rs. 41,000
- **Closing Balance**: Rs. 32,000

### **June 2019**
- **Opening Balance**: Rs. 32,000
- **Inflows (Credit Sales)**: Rs. 50,000 (from May)
- **Total Inflows**: Rs. 50,000
- **Outflows**:
  - Credit Purchases (from April): Rs. 15,000
 

Using the given information, draw a cash budget for April, May, and June 2019.

Learn how to prepare a cash budget for the months of April, May, and June 2019 using credit sales, credit purchases, office expenses, and other financial adjustments. Includes a step-by-step breakdown of inflows, outflows, and closing balances.

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