Brian started in business on 1 January 2012. The following is a list of his transactions for his first month of trading:

1.1.12 Opened a business bank account with £25,000 obtained from private resources.

2.1.12 Paid one month’s rent of £2000 by cheque.

3.1.12 Bought goods costing £5000 on credit from Linda.

4.1.12 Purchased motor car from Savoy Motors for £4000 on credit.

5.1.12 Purchased goods costing £3000 on credit from Sydney.

10.1.12 Cash sales of £6000.

15.1.12 More goods costing £10 000 purchased from Linda on credit.

20.1.12 Sold goods on credit to Ann for £8000.

22.1.12 Returned £2000 of goods to Linda.

23.1.12 Paid £6000 in cash into the bank.

24.1.12 Ann returned £1000 of goods.

25.1.12 Withdrew £500 in cash from the bank to open a petty cash account.

26.1.12 Cheque received from Ann for £5500; Ann also claimed a cash discount of £500.

28.1.12 Office expenses of £250 paid out of petty cash.

29.1.12 Sent a cheque to Savoy Motors for £4000.

30.1.12 Cheques sent to Linda and Sydney for £8000 and £2000, respectively. Cash discounts were also claimed from Linda and Sydney of £700 and £100, respectively.

31.1.12 Paid by cheque another month’s rent of £2000.

31.1.12 Brian introduced £5000 additional capital into the business by cheque.

Required:

(a) Enter the above transactions in Brian’s ledger accounts for January 2012, balance off the accounts and bring down the balances as at 1 February 2012.

(b) Compile a trial balance as at 31 January 2012.