Interflow Plumbing Services Ltd began operating from its head office in Birmingham three months ago. Transactions relating to these three months have been as follows:

Requie:
1. For each transaction, identify the accounts that will be involved.
2. Use the blank T-accounts supplied on the following page to enter each transaction. You do not need to enter dates.

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20x7 Sept. 5 The owner, Simon Collin, invested 155,000 of his own money for the business. 13 He purchased a small office and warehouse for 145,000. A deposit of 35,000 was paid and a mortgage for the balance was taken out from HSBC Bank. 28 Office furniture costing 24,000 was Oct. 5 purchased from PC World Ltd on credit. Five vans were purchased from Motor Centre Ltd. Credit of 85,000 was arranged with the car company while the balance of the purchase cost, 29,000, was paid for with cash.