Ron Stewart is a wholesaler; on 1 January 20-8 he had the following balances in his ledger:

Dr Cr

£

£

Capital 6,800 A Frazer 880 Motor vehicle 3,800 A Hodges 1,100 J Jennings 740 Bank 2,040 7,680 7,680 During the month of January 20-8 the following transactions took place:

Jan 2 Received £740 by cheque from J Jennings 3 Bought goods on credit costing £1,070 from A Frazer 4 Bought office equipment costing £560, paying by cheque 5 Sold goods on credit to A Hodges £930 8 Paid A Frazer £880 by cheque 11 A Hodges returned goods to the firm £37 14 Sold goods on credit to J Jennings £590 17 Drawings of £500 by cheque 20 Purchased goods on credit from A Frazer £760 22 Received £1,100 by cheque from A Hodges 26 Sold goods on credit to A Hodges £710 28 Returned goods to A Frazer £98 31 Paid salaries of £480 by cheque You are required to:

(a) Open ledger accounts at 1 January 20-8.

(b) Record the transactions during January in the appropriate ledger accounts and open any other accounts which may be required.

(c) Balance the accounts and extract a trial balance on 31 January 20-8.