On 1 January 2012 a business had a capital of £300 and £350 non-current assets, £50 cash in hand and a bank overdraft of £100. The transactions in the month ended 31 January were as stated.

Required:

(a) Record these transactions in a three-column Cash Book and post them to appropriate ledger accounts.

(b) Extract a Trial Balance as at 31 January.

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Cash sales Credit purchase from P Wages paid in cash Amount paid into bank Credit sales to Q Paid P £270 by cheque after deducting 10% discount Q settled £200 due from him less 5% discount Wages paid by cheque Bank charges notified Received balance due from Q subject to 4% discount £500 £400 £100 £370 £300 £100 £30