Note: If a transaction names the other party to it, assume that it is on credit terms.

Jacob commenced business as a wholesaler. His transactions during the first week were:

Required:

(a) Record the transactions in appropriate books of prime entry, post the transactions, assuming that Day Books’ totals are posted to the nominal accounts only at the end of each week.

(b) Extract a Trial Balance as at 5 January.

(c) Prepare the financial statements of Jacob’s business for the five days to 5 January.

Transcribed Image Text:

Date Transaction 1.1 Commenced business with a capital in cash of £15,000 Paid £4,000 to acquire shop furniture and fittings Purchased goods for sale from Larry Bros for £7,500 Paid £300 for advertising 2.1 3.1 4.1 Returned to Larry Bros goods purchased for £250 Sold goods to Essex plc for £4,500 Paid £150 for stationery Purchased goods for £4,500 from Wembley Traders Sold goods to Nord plc for £6,000 Essex Ltd returned goods sold to them for £400 Sold goods to Westmore Ltd for £5,600 Purchased goods for £3,000 from Larry Bros Received £4,100 from Essex Ltd Westmore Ltd returned goods sold to them for £400 Paid the whole amount due to Larry Bros on this date Purchased goods for £5,250 from Larry Bros Sold goods for £3,000 to Southey Ltd Returned to Larry Bros goods purchased for £250 Paid £200 for advertising Purchased goods for £4,000 from Wembley Traders Paid £1,000 as rent