2016
2017
July August September October November December  January February
Sales 12300 10600 15600 17500 13500 11500 10800 13400
Purchases 7000 5600 9800 4600 5400 6000 4700 5600
General Expenses 1200 2300 1300 1400 980 1100 1400 1600
Wages 2600 2650 2700 2500 2400 2800 2550 2850
Rent 1500 1450 1550 1600 1560 1570 1580 1600
1) 10% of sales are on a cash basis, the remainder is received a month after.
2) 30% of purchases are paid 2 months after the goods are received, the remainder is paid 3 months after.
3) General expenses are paid in the month incurred.
4) Wages are paid one month in arrears.
5) Rent is paid 2 months in advance.
6) The company will pay its electricity bill for the first quarter of 2017 in December 2016; £850
7) The company will buy new machinery costing £24,000. One third will be paid in November, the rest in December.
8) The company will sell unwanted equipment in December. The resale value is estimated to be £8500.
9) The opening balance on 1st October is £3500.