Helen Berry started a retail business on 1 March 1989 with £3,000 in the bank, furniture and fittings worth £3,000 and premises valued at £15,000.

She had borrowed £2,000 from Busifmance Ltd for six months.

Draft a balance sheet and open ledger accounts for all the items included.

Enter the following transactions in the ledger, opening new accounts where necessary.

2 March Purchased on credit £1,000 stock from Northern Foods and

£500 stock from AKJ.

3 March Sales for cash £50.

4 March Sales for cash £100.

5 March Paid £80 cash into bank.

6 March Returned £100 of goods to A.KJ.

7 March Paid amount owing to Northern Foods by cheque less 2% discount.

8 March Sold goods for £100 toN. Timms on credit.

9 March Paid insurance £25 by cheque.

10 March Received £20 cash for letting the flat above the shop.

Note that you have to calculate the owner's capital on 1 March yourself.