Write down in you notebook what is meant by

(a) an account having a debit balance

(b) an account having a credit balance.

11 Edward started a new business on 1 January 2004. The following transactions took place during his first month in business:
2004 1.1 Edward commenced business with £10 000 in cash.
3.1 He paid £8000 of the cash into a business bank account.
6.1 He bought a van on credit from Perkin’s garage for £3000.
9.1 Edward rented shop premises for £1000 per quarter; he paid for the first quarter immediately by cheque.
12.1 He bought goods on credit from Roy Limited for £4000.
15.1 He paid shop expenses amounting to £1500 by cheque.
18.1 Edward sold goods on credit to Scott and Company for £3000.
21.1 He settled Perkin’s account by cheque.
24.1 Edward received a cheque from Scott and Company for £2000; this cheque was paid immediately into the bank.
27.1 Edward sent a cheque to Roy Limited for £500.
31.1 Goods costing £3000 were purchased from Roy Limited on credit.
31.1 Cash sales for the month amounted to £2000.
Required:

(a) Enter the above transactions in appropriate ledger accounts, balance off each account as at 34 January 2004, and bring down the balances as at that date; and

(b) extract a trial balance as at 31 January 2004.