On 1 September, V Duckworth, a bar manager and entrepreneur, has the following financial position relating to her activities as a corporate function organiser:

During September the following events occur:
1 M Baldwin settles his account after taking a cash discount of 20%.
2 A Roberts is declared bankrupt and no payments are anticipated in respect of the debt.
3 G Platt pays in full.
4 All creditors are paid. Newton and Ridley had indicated that, because of the speed of payment, a 10% quick settlement discount may be deducted from the payment.
Required:

(a) Use T-accounts to open a bank account and the accounts for the debtors and creditors at 1 September.

(b) Record the above transactions for September.

(c) Balance-off the accounts at the end of the month.

Transcribed Image Text:

Balance at Bank Debtors - M Baldwin 1,000 2,500 - A Roberts 900 - G Platt 250 Stock 750 Creditors - Newton and Ridley -J Duckworth 4,500 125