On 2 November 19X7 Fred Bilding set up in business on his own account as an Estate Agent. The following transactions^occurred during the month of November:

Fred Bilding paid £10,000 into a bank account for the business and immediately withdrew £200 in cash.

An office was rented for the business and the rent of £750 for November was paid by cheque.

Office furniture costing £2,400 was purchased from Grumwicks pic under their

‘interest-free’ credit scheme. A down payment of £600 was paid immediately by cheque. The balance is to be paid in three equal monthly instalments.

A wordprocessor costing £525 was purchased for the office and paid for by cheque.

Office supplies of £155 were purchased and paid for by cheque.

Fred Bilding received a cheque for £600 as commission in respect of the sale of a client’s home.

The home of another client, Jacob Podmore, was sold. The commission on this sale was £875 but it will not be received in cash until later in December.

Advertising bills totalling £410 were paid by cheque of which £110 was incurred advertising the home of Jacob Podmore. This amount is recoverable from the client.

Further office supplies costing £97 were purchased and paid for in cash.

Fred Bilding transferred £604 from his business bank account to his private bank account, £84 of which was to reimburse himself for motor expenses incurred on business use. The remaining £520 was withdrawn for private purposes.

{a) Show by means of ledger accounts how the above transactions would be recorded in the books of Fred Bilding, and

(b) Balance off those ledger accounts containing more than one entry as at 30 November 19X7 entering the correct balances in the accounts.