Note, this question should not be attempted until cash discounts and trade discounts have been covered. It should also be noted thatthis is an example of the exception to the rule that closing inventory does not generally appear in a trial balance.

On 1 October 2016, the owner of the USS Enterprise, Mr Kirk, decides that he will boldly go and keep his records on a double entry system. His assets and liabilities at that date were:

Fixtures and equipment 20,000 Inventory including weapons 15,000 Balance at Universe Bank 17,500 Cash 375

Accounts payable - Spock 3,175 - Scott 200 - McCoy 500

Kirk's transactions during October were as follows: 1 Sold faulty phasers, original cost 500, to Klingon Corp, for cash 5,000 2 Bought Photon Torpedoes (weapons), on time from Central Council 2,500 3 Sold goods to Aardvarks, original cost 250, on time, 1,500 4 Bought Cloaking Device (Fixture and Fittings) from Klingon Corp 3,500 5 Paid the balance owed to Spock at 1 October less a 5 per cent cash discount 6 Paid Central Council full amount due by cheque 7 Received full amount due from Aardvarks by cheque 8 Paid Klingon Corp by cheque after deducting 20 per cent trade discount 9 Paid, by bankers order, 10,000 for repairsto Enterprise following disagreement over amount owing to Klingon Corp and faulty phasers. Required: Open Enterprise's ledger accounts at 1 October, record all transactions for the month, balance the ledger accounts, and prepare a trial balance as at 31 October.