Creassos Ltd was formed in July 2000 with £20,000 of capital. £7,500 of this was used to purchase equipment. The owner budgeted for the following:

Wages and other expenses are paid in cash. In addition to the above, depreciation is £2,400 per annum. No inventory is held by the company.
• Calculate the profit for each the three months from July to September and in total.
• Calculate the cash balance at the end of each month.
• Prepare a Balance Sheet at the end of September.

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Sales Receipts Purchases Payments Wages Other from debtors to creditors expenses July 20,000 8,000 5,000 3,000 2,000 Aug. 30,000 20,000 15,000 10,000 4,000 2,000 Sept. 40,000 30,000 20,000 20,000 5,000 3,000