Self-test Niklas Ltd is a small company which sells clocks.

The following budgeted information is available for the five months ending 31 October.
June July August September October Expected purchases (clocks) 60 80 120 100 80 Each clock costs £12.50 Each month, 25% of the purchases are expected to be on a cash basis.
Sixty per cent of the amount owed to the creditors is expected to be paid after one month. The remainder is expected to be paid after two months.
Required:

(a) Prepare a creditors’ budget for Niklas Ltd for each of the three months ending 31 October.
(AQA Introduction to management Accounting Unit 4 Jan 2009)