On 1 October 20X9, the owner of the USS Enterprise, Mr Kirk, decided that he will boldly go and keep his records on a double entry system. His assets and liabilities at that date were:

Kirk’s transactions during October were as follows:

1. Sold faculty phasers, original cost £500, to Klingon Corp, for cash £5,000

2. Bought Photon Torpedoes (weapons), on credit from Central Council £2,500

3. Sold Stocks to Aardvarks, original cost £250, on credit, £1,500

4. Bought Cloaking Device (Fixture and Fittings) from Klingon Corp £3,500

5. Paid the balance owed to Spock at 1 October less a 5% cash discount

6. Paid Central Council full amount due by cheque

7. Received full amount due from Aardvarks by cheque

8. Paid Klingon Corp by cheque after deducting 20% trade discount

9. Paid, by bankers order, £10,000 for repairs to Enterprise following disagreement over amount owing to Klingon Corp and faculty phasers.

Required:

Open Enterprise’s ledger accounts at 1 October, record all transactions for the month, balance the ledger accounts, and prepare a trial balance as at 31 October.

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Fixtures and equipment Stock including weapons Balance at Universe Bank Cash Creditors - Spock - Scott - McCoy £ 20,000 15,000 17,500 375 3,175 200 500