Further transactions for the Wade Company for July 1984, relating to goods acquired on credit terms were:

£

July 3 Purchases from S. Smith 460 7 Payment to S. Smith 825 7 Discount received from S. Smith 15 II Purchases from D. Owen 936 18 Returns to S. Smith 20 21 Payment to R. Nelson 2070 26 Purchases from S. Smith 538 28 Returns to R. Nelson 35

(a) Record the above transactions in the books of prime entry prepared for Problem I.

(b) Prepare journal entries to record the postings at the end of July to the appropriate ledger accounts.

(c) Post the journal entries for June (Problem I) and July to the ledger accounts, including the purchase ledger control account.

(d) Reconcile the balance at the end of July in the purchase ledger control account with the sum of the individual balances on trade creditors' accounts.

(e) Explain how the balance on the account of R. Nelson should be described in a Balance Sheet prepared for the end of July .