The trial balance of Ken Stevens on 30 April 20-4 was as follows:

Dr Cr

£

£

Sales 20,750 Purchases 13,170 General expenses 4,972 Fixtures 2,500 K Gibson 1,130 T Lowe 700 Bank 1,720 Drawings 2,800 7,228 Capital Stock 2,386 28,678 28,678 During the month of May the following transactions took place:

May 1 Bought goods on credit from T Lowe £85 2 Sold goods on credit to K Gibson £105 18 Banked cash sales £400 20 K Gibson paid £680 by cheque in part settlement of his account 26 Paid general expenses by cheque £97; sent a cheque value £300 to T Lowe in part settlement of his account 28 Paid general expenses by cheque £275 30 Withdrew £300 from the bank for his own use You are required to:

(a) Open the accounts at 1st May 20-4.

(b) Record the transactions directly in the accounts by means of double entries.

(c) Extract a trial balance at 31 May 20-4.