Henry York is a sole trader who keeps records of his cash and bank transactions in a threecolumn cash book. His transactions for the month of March were as follows:

Required:

(a) Enter the above transactions within T-accounts and bring down the balances.

(b) Assuming no opening debtors, creditors or stock, prepare a trading and profit and loss account for the month of March.

Transcribed Image Text:

March Cash in hand £100, Cash at bank £5,672 York received a cheque for £1,246 from W Abbot which was paid directly into the bank. This represented sales. 6 Paid wages in cash £39 8 Sold goods for cash £152 10 1 4 Received cheque from G Smart for £315, in full settlement of a debt of £344; this was paid directly into the bank. 11 Paid sundry expenses in cash £73 14 Purchased goods by cheque for £800 18 Paid J Sanders a cheque of £185 in full settlement of a debt of £201 23 Withdrew £100 from the bank for office purposes 24 Paid wages in cash £39 26 Sold goods for cash £94 28 Paid salaries by cheque £230 31 Retained cash amounting to £150 and paid the remainder into the bank