R. Poon was having a whale of a time trying to get a trial balance for his company Redwar. He had the following transactions during the month of May. He asks you to prepare the book entries and a trial balance.

Required:

Prepare R. Poon’s:
(i) Ledger accounts.
(ii) Trial balance after balancing off the accounts. Bring forward the income statement items on 31 May, but there is no need actually to transfer the income statement items.

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1 May 2 May 4 May 7 May 8 May 10 May 11 May 15 May Invests 8,000 in his business bank account. Purchases 2,000 goods for cash from N. Yuwit. 4,000 of goods on credit from S. Eal. 1,000 of goods on credit from P. Olar. Sells 1,500 goods for cash to A.R.C. Tic. 5,000 goods on credit to H. Unter. 3,000 goods on credit to M. Dick. M. Dick returns 2,000 goods unpaid saying that they were rotting. R. Poon sends M. Dick's 2,000 goods (that he had originally purchased from S. Eal for 1,800) back unpaid because he can't stand the smell. Purchases another 1,200 of goods on credit from S. Eal. H. Unter buys on credit 1,600 of goods from R. Poon. R. Poon receives bank interest of 250.