Mike Burton commenced trading on 3 January 2010 with a capital in cash of £10,000. His transactions during the first week were as follows:

Required:

(a) Record these transactions in the Cash account and in the Bank account, drawn as a two-column Cash Book and post them to appropriate ledger accounts.

(b) Prepare a Trial Balance of Mike Burton’s business as at 7 January 2010.

(c) State whether the balancing of the Trial Balance should convince Mike that his accounts provide a full and accurate record of the transactions of his week’s trading.

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Date Transaction 3.1 3.1 Deposited £9,500 in a Bank account Paid £800 by cheque no 01 for furniture Paid £1,800 by cheque no 02 for purchases Paid £40 in cash for office cleaning 3.1 3.1 3.1 Paid £240 by cheque no 03 for advertising Sold goods for £2,100 3.1 4.1 4.1 Paid £1,450 by cheque no 04 for purchases Received £1,000 as a loan from Sylvia Sold goods for £1,840 4.1 4.1 Paid £1,600 by cheque no 05 for furniture Date 5.1 5.1 5.1 5.1 5.1 6.1 6.1 6.1 7.1 7.1 Transaction Paid £50 in cash for office cleaning Paid £2,240 by cheque no 06 for purchases Sold goods for £1,850 Paid £420 by cheque no 07 for advertising Deposited £5,840 in the Bank account Paid £40 in cash for office cleaning Sold goods for £1,250 Paid £1,800 by cheque no 08 for purchases Sold goods for £2,480 Paid £280 by cheque no 09 for advertising