Burj Furniture has started a business selling furniture. During the year to 31st May 2021 the following transactions occur: 

1) Introduced £8,000 Capital into the business. 

2) Bought goods for £4,000. 

3) Sold goods on credit for £1,200 to SZR Custom Cars. 

4) Paid wages of £100. 

5) Received a £6,000 cash loan from the bank. 

6) Bought goods on credit for £3,000 From Mega Furniture. 

7) Sold goods for £1,500 cash. 

8) Bought a delivery van for use in the business costing £5,000. 

9) Bought Stationary for £20. 

10) Received and paid an electricity bill for £300. 

11) Sold goods for £800 on credit to Palm Estates. 

12) Paid a supplier £1,200. 

3) Received £900 from SZR Custom Cars. 

14) Repaired the delivery van costing £60. 

15) Bought a fork lift truck on credit for £3,500. 

Required: 

 

a) Show the nominal ledger entries (using T-accounts) for the above transactions Close off each T-account and prepare an initial trial balance as at 31 May

 

b) Produce a Statement of Profit or Loss for year ended 31st May 2021 and a Statement of Financial Position as at 31st May 2021