(This is a more complex example requiring Day Books and all three ledgers.)

The following are the first week’s transactions of George Andrews:

May 1 George started the business by paying in £4,000 into the business bank account May 1 Bought goods for resale with a cheque for £2,000 and paid £30 by cheque for advertising.

May 2 Sold goods for £2,400, paid by bank transfer May 3 Paid £80 by cheque for printing May 4 Paid rent by bank transfer, £150 May 5 Sold goods for £800, paid by bank transfer May 6 Paid wages £300 cash.

May 7 Bought goods for resale costing £2,100 on credit from Jupiter plc, and sold goods worth £250 on credit to Saturn Ltd Enter all the above transactions into the bookkeeping records of George Andrews and prepare a trial balance at 7 May.