Samuel maintains a full set of accounting records including a three column cash book. He provided the following information for October 20–5.
Oct 1 Cash $110, bank $5,150 (debit)
Trade receivables – Paul $160, Jasmine $880
Trade payables – Adele $350
4 Paid a cheque to Adele in settlement of her account of $350 less 2% discount
9 Purchased a motor vehicle, $9,500, and paid by credit transfer
12 Cash sales, $1,270, of which $1,220 was paid into the bank
15 Received a cheque, $160, from Paul
19 Took $1,000 from the bank for personal use
24 Paid office expenses in cash, $35
26 Received a cheque from Jasmine for $858 in settlement of her account of $880
29 The cheque received from Paul on 15 October was returned dishonored
30 Paid all cash into the bank except $80
a. Enter the balances in the appropriate accounts on 1 October.
b. Enter the transactions in the cash book and the ledgers. Balance the cash book on 31 October and bring down the balances on 1 November 20–5.
c. Transfer the totals of the discount columns in the cash book to the ledger.
d. Total or balance the accounts of the trade receivables and trade payables as required.