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Problems On Cash Budget MBA
Problems On Cash Budget MBA
Problem No. 01
You are given the following budgeted information relating to Kalmilata Ltd.:
Prepare a Cash Budget for the months of January to April, 2021. There is a plan of starting a
Project with an initial cash requirement of Tk.1,50,000 in April. Will it be possible to start the
Project without borrowing?
The following budgeted information has been collected from the records of Banalata Ltd.:
The Firm wants to buy a Plant in October at a price of Tk.1,50,000. Will it be possible to buy the
Plant without borrowing?
Solution: Problem No. 01
Kalmilata Ltd.
Cash Budget
For the Period from January to April, 2021
Particulars January February March April
Taka Taka Taka Taka
1. Opening Balance 17,250 10,250 10,250 10,250
60,000 80,000 90,000 2,10,000
2. Receipts
8. Financing:
a) Loan taken 23,000 30,000 30,000 Nil
b) Repayment of Loan with Nil Nil Nil 85,420
Interest
10,250 10,250 10,250 24,830
9. Closing Balance (5 + 8a – 8b)
23,000 53,000 83,000 Nil
10. Outstanding Loan Balance
Workings: