At 1 September the financial position of Sara Young’s business was:

During September:

1. The three debtors settled their accounts by cheque subject to a cash discount of 4%.

2. A cheque for £100 was cashed for office use.

3. GH was paid by cheque less 7.5%.

4. IJ’s account was settled, subject to a discount of 5%, by cheque.

5. Wages of £130 were paid in cash.

Required:

(a) Open a three-column cash book and the accounts for the debtors and creditors at 1 September.

(b) Record the above transactions for September.

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Cash in hand Balance at bank Debtors - AB CD EF Stock Creditors - GH IJ £ 80 900 200 500 300 1,000 600 1,400