You work in the accounts department ofMoortown Enterprises. On 30 April 20-9 the following balances appeared in the ledger:

£

Stock 3,095 Carriage outwards 249 Drawings 2,586 Discount allowed 403 Creditors 5,409 Sundry expenses 1,608 Purchases 11,928 Bad debts 685 Sales 18,470 Returns inwards 430 Debtors 8,750 Discount received 682 Rates 1,206 Premises 68,500 Returns outwards 964 Bank overdraft 3,145 Petty cash 220 Wages and salaries 16,260 Capital ?

A short time later the following information was discovered:

(i) The bank statement showed that a payment for rates of £850 had been made by direct debit, but no entry had been made in the accounts

(ii) D Myers, who owes the firm £480, has been declared bankrupt; a cheque for 15 per cent of the amount owed is received in full and final settlement of the debt, the remainder is to be written off as a bad debt

(iii) Goods bought on credit from K Williams costing £578 had been incorrectly posted to KWilliamson’s account

(iv) An invoice for £202 received from A Oldridge had not been entered in the books

(v) A payment of £253 for repairs to the owner’s private car had been entered in sundry expenses You are required to:

(a) Prepare a trial balance as at 30 April 20-9 after considering the above information and calculate the capital account balance.

(b) Show journal entries to record items (i)-(v). Full narrations are required.