Dixens Ltd, a wholesaler of electrical equipment, starts business on 1 January with £100,000 in cash.

Required 

1 Record all transactions in T-accounts.
2 Prepare a profit and loss statement for the month.
3 Prepare a balance sheet as at 31 January.

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Jan. 2 Purchases warehouse for 35,000 and pays cash. 5 Purchases on credit stock of electrical equipment for 8,500 from CU Supplies Ltd. 7 Pays 25,000 cash into a business bank current account, and 5,500 into a business bank savings account. 9 Sales of electrical equipment for 6,100 and receives cash. 11 Pays advertising 1,140 by cheque. 13 Buys a second-hand motor van for 4,500 and pays by cheque. Original cost of van was 15,000. 14 Pays van tax 180 by cheque. Pays insurance on van 350 by cheque. Purchases petrol for 67 and pays cash. 17 Pays wages 500 in cash. 19 Purchases packing machinery for 940 and pays by cheque.