Katherine Jones sets up a small agency that markets and distributes goods. She has the following regular credit customers (Edwards, Smith and Patel) and regular suppliers of credit goods (Johnston and Singh). She has the following transactions in the first week of July.

1 July Invests £195,000 capital into the business.

2 July Buys some premises for £75,000 by cheque.

Buys office equipment for £9,000 by cheque.

Buys goods from Johnston for £3,000 and from Singh for £1,000 both are on credit.

Cash purchases of £7,000.

3 July Sales of £10,000, £9,000 and £7,000 are made on credit to Edwards, Smith and Patel, respectively.

4 July Returns £500 goods unpaid to Johnston as they were damaged.

5 July Pays bills for wages £4,000, electricity £2,000 and telephone £1,000.