At 1 September the financial position of Sara Young’s business was:

During September:
1 The three debtors settled their accounts by cheque subject to a cash discount of 4%.
2 A cheque for £100 was cashed for office use.
3 GH was paid by cheque less 7.5% cash discount.
4 IJ’s account was settled, subject to a discount of 5%, by cheque.
5 Wages of £130 were paid in cash.
Required:

(a) Open a three-column cash book and the accounts for the debtors and creditors at 1 September.

(b) Record the above transactions for September.

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Cash in hand 80 Balance at bank Debtors - AB 900 200 CD 500 EF 300 Stock 1,000 Creditors - GH IJ 600 1,400