Sales and Purchases are one month credit and Debtors have a 1 month collection period meaning it's the Sales for February.

1. Accountants for Zambezi Engineering Limited have produced the following draft balance sheet as at 31 January 2020. Fixed Assets Equipment Motor Vehicles Current Assets Stock Debtors Bank Current Liabilities Creditors Net Current Assets Long Term Liabilities Loan Total Net Assets Capital and Reserves Ordinary Share Capital Revenue Reserves Draft Balance Sheet as at 31 January 2020 Cost 200,000 160,000 360,000 Dep. To Date Net Book Value 120,000 100,000 220,000 80,000 60,000 140,000 260,000 480,000 20,000 760,000 230,000 230,000 530,000 750,000 250,000 500,000 300,000 200,000 500,000