Record the following transactions of A Florist using double-entry bookkeeping; summarize them in the form of a trial balance, and prepare an income statement for the month of January, and a statement of financial position as at the end of the period.

At the end of January the closing inventory of flowers amounted to £210, at net realizable value. Depreciation should be ignored.

Transcribed Image Text:

1 Jan Started business with 10,000 capital, paid into the bank 2 Jan Bought second-hand van; paid 4,000 by cheque 3 Jan Bought flowers on credit from Miss Daisy, 700 4 Jan Sold flowers for cash, 120 5 Jan Bought flowers, paying by cheque, 456 6 Jan Paid one month's rent, 408 7 Jan Sold flowers on credit to the University of Eastminster, 999 14 Jan Sold flowers in Berwick Street Market for cash, 236 20 Jan Paid Miss Daisy 400 28 Jan Received a cheque from University of Eastminster for 899