A business commenced trading for the week commencing 28 May 20X4 with £79 in cash and a bank overdraft of £515.
The following receipts and payments occurred during the week ending 3 June 20X4. 

28 May Paid travelling expenses of £37 in cash.
29 May Paid a telephone bill of £120 (including £20 value added tax) by debit card.
29 May Grant Degan, a credit customer, settled an invoice for £90 paying £81 in cash and receiving £9 discount for prompt settlement.
30 May Made cash sales totalling £480 including £80 value added tax. The amount was received by bank transfer.
31 May Paid an invoice for £100 from Gaga Ltd by bank transfer for £92. £8 discount was received for prompt settlement.
1 June Made cash purchases totalling £120 including value added tax of £20 paying by debit card.
1 June Made cash sales of £240 inclusive of value added tax of £40.
2 June Paid staff wages of £300. This was partly paid by BACS totalling £230, the balance being paid in cash.
2 June Paid £200 from the till into the business bank account.

Required
a. Draw up a cash book with separate columns for dates, narrations, folios, discount, VAT, bank and cash. Enter the opening balances and record the transactions for the week commencing 28 May 20X4. Balance the cash book as at 3 June 20X4.
b. Describe how the totals for the Discount and VAT columns will be entered into the ledger.