Question

'Myrto' Cosmetics Ltd has decided to open a new shop in Leeds. A new bank account will be opened on 1 April 2012.

The following is a summary of the expected transactions for the first three months:

1)'Myrto' transferred 55,000 capital in April into the new shop bank account.

2)The shop expects to sell items worth 8,000 in April, 9,000 in May and 10,000 in June. In each month 80% of the sales will be in cash and 20% will be on credit to account customers. The account customers will receive two months credit and will settle their account two months following the sale. No bad debts are expected.

The shop will make purchases of 4