Enter the following transactions in the ledger of A Baker and prepare a trial balance at 31 May, together with a calculation of the profit for the month and a balance sheet at 31 May.

May 

1 Started in business with £1,500 in the bank and £500 cash 

2 Purchased goods to the value of £1,750 from C Dunn, agreeing credit terms of 60 days 

3 Bought fixtures and fittings for the bakery for £150, paying by cheque 

6 Bought goods on credit from E Farnham for £115 

10 Paid rent of £300 paying cash 

12 Bought stationery – cash book and invoices – for £75 – paying by cash 

14 Sold goods on credit, value £125, to G Harlem 

20 Bought an old van for deliveries for £2,000 on credit from I Jumpstart 

30 Paid wages of £450 net for the month by cheque 

31 Summarised cash sales for the month and found them to be £2,500. 

Took a cheque for £500 as own wages for the month. Banked £2,000 out of the cash sales over the month 31 Closing stock was £500.