Journalise the December transactions and post them to the above accounts. All receipts are paid into the bank and all payments are made by cheque.

Martin Webb balances his accounts on 31 December each year. Balance the accounts, taking into account the adjustments given below, and prepare trading and profit and loss accounts and a balance sheet.

Adjustments Business expenses of $500 were outstanding.

Insurance of $500 was prepaid.

Fixtures are to be depreciated by $1,000.

Closing inventory is valued at $10,000.