Fatima has been in a business for some years. The following balances were brought forward in her accounts as at 1 January 20X1.

During the year to 31 December 20X1 the following transactions took place:
Goods bought from Jeremy on credit for £60,000.
Cash sales of £40,000.
Cash purchases of £30,000.
Goods sold to Michael on credit for £100,000.
Cheques sent to Jeremy totalling £58,000.
Cheques received from Michael totalling £90,000.
Cash received from Michael amounting to £14,000.
Office expenses paid in cash totalling £18,000.
Purchase of delivery van paid by cheque £24,000.
Cash transfers to bank account totalling £6,000.
Required:

(a) Compile Fatima’s accounts for the year 31 December 20X1, balance off the accounts and bring down the balances as at 1 January 20X2.

(b) Extract a trial balance as at 31 December 20X1.

Transcribed Image Text:

Dr Cr Bank 10,000 Capital 40,000 Cash 2,000 Jeremy 4,000 Michael 12,000 Furniture 20,000 44,000 44,000