October and the balance sheet as at that date.

3.7 MacPherson started business as a sole trader on 1 July 20X0. He immediately paid £60,000 from his private bank account into a new business bank account. Further transactions during July were as follows.

£

1 July Purchased furniture on credit from MacDuff for 16,000 4 July Bought goods for resale on credit from Harris for 10,000 7 July Sold goods on credit to McDougall, which cost £2,500, for 3,500 10. July Paid sundry expenses 1,200 20 July Sold goods for cash, which cost £2,000, for 3,600 28 July Received payment from McDougall 3,500 30 July Paid wages to staff 1,800 Analyse the above transactions in terms of the required debit and credit entries.