Betty commenced trading as a greengrocer on 1 July 2010 with £5,000 cash as capital. On the first day she paid £4,750 for noncurrent assets and £810 for expenses and received £3,150 from cash sales. However, her purchases, listed on the right, were all on credit. Suppliers have allowed her one month’s credit.

Required:

(a) Identify the books of prime entry recording each of Betty’s transactions.

(b) Extract a Trial Balance at close of business on the first day.

(c) Assuming that all goods purchased have been sold on the same day, prepare a Statement of income and a Statement of financial position.

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Suppliers Dave Mini Market Stella Grocers Maniam & Co. £600 £550 £420