Teek starts business with £5000 capital, paying this amount into a bank account (i) Bought fittings £600, paying by cheque. (ii) Bought goods on credit £2000. (iii) Bought van for £3000 paying cheque for £1000, the balance to be paid later. (iv) Sold on credit for £800 goods which had cost £550. (v) Paid creditors from transaction (ii) the full amount owing by cheque. (vi) Purchased more goods £400, paying by cheque. (vii) Sold goods for cash receiving £300. They originally cost £200. (viii) Teek withdrew £150 in cash for her own personal use. Required

(a) Draft the initial balance sheet and then the changes that occur as each of the transactions takes place.

(b) Enter the transactions in T accounts.

(c) Prepare a trial balance.

(d) Calculate the profit and prepare a balance sheet.