You work in the accounts department ofWeetwood Enterprises. On 31 May 20-9 the following balances appeared in the ledger:

£

Purchases 11,026 Creditors 3,862 Stock 3,252 Returns outwards 493 Discount received 495 Returns inwards 364 Bad debts 315 Petty cash 183 Debtors 6,396 Commission received 780 Carriage outwards 574 Discount allowed 402 Equipment 18,750 Carriage inwards 369 Drawings 2,040 Wages and salaries 16,865 General expenses 840 Sales 15,480 Bank balance 1,364 Capital ?

A short time later the following information was discovered:

(i) A credit note for £76 received from R Eoxwood had not been entered in the books

(ii) Goods bought on credit from M Kellerman costing £485 had been incorrectly posted to the account ofM Keller

(iii) C Gulliver, who owes the firm £360, has been declared bankrupt; 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

(iv) The owner’s private motor expenses had been entered in general expenses; these are estimated to be I2V2 per cent

(v) A customer, G Sanderson, had deducted £18 discount to which he was not entitled; this had been entered in the customer’s account and the discount account You are required to:

(a) Prepare a trial balance as at 31 May 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.