On 1 September, R. Maeve, a club manager and entrepreneur, has the following financial position relating to her activities as a corporate function organizer:

During September the following events occur:
1 K. Hoskin settles his account after taking a cash discount of 10 per cent.
2 G. Volmers is declared bankrupt and no payments are anticipated in respect of the debt.
3 G. Carnegie pays in full.
4 All accounts payable are paid. Real Fine Ales had indicated that, because of the speed of payment, a 5 per cent quick settlement discount may be deducted from the payment.

Required:

(a) Use T-accounts to open a bank account and the accounts for the accounts receivable and accounts payable at 1 September.

(b) Record the above transactions for September.

(c) Balance-off the accounts at the end of the month.

Transcribed Image Text:

f Balance at bank Accounts receivable - K. Hoskin 40,000 20,000 - G. Volmers 8,000 - G. Carnegie 4,000 Inventory 38,000 Accounts payable - Real Fine Ales - R. Goldthwaite 32,800 1,000