Answer and Explanation:
The preparation of the cash budget for the month of March ended is presented below: Â Â Â
                       Cash Budget
Particulars              Amount  ($)
Opening Cash Balance     72,000
Add: Cash Receipts from Sales 300,000
Total Cash Available      372,000
Less:
Cash Payments Â
Purchases               140,000
Salaries                   80,000
Cash Expenses           45,000
Repayment of Bank Loan    20,000
Total Payments           -285,000
Closing Cash Balance        87,000
We simply deduct the all payments from the total cash available so that the ending balance of cash could come
