On 1.4.20X1 H Britton commenced a business dealing in subaqua equipment. He paid £20,000 into the business bank account and the following transactions took place during the month of April.

Required

(a) Record the above transactions in the ledger accounts of H Britton maintaining separate cash and bank accounts and separate accounts for returned goods.

(b) Balance off the ledger accounts as at 30 April and extract a trial balance.

(c) Prepare the income statement for the month ended 30 April and close off all revenue and expense accounts.

(d) Prepare a balance sheet as at 30 April.

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1st From previous owner bought shop 8,000, fixtures and fittings 5,000 and stock 4,000 paying by cheque 17,000 2nd Withdrew cash from bank for shop use Paid for stationery and other incidentals 500 175 3rd Sold goods for cash 450 4th Sold goods on credit to A Britton 650 5th Cash sales 250 Wages paid in cash 160 8th Bought goods for resale on credit from R Sevier 950 A Britton returned faulty goods 100 9th Cash sales 340 Paid sundry expenses in cash 80 10th Sold goods on credit to R Sewell 11th Returned goods to R Sevier 12th Cash sales Wages paid in cash Paid excess cash into bank 15th Sold goods on credit to S Boatman 16th Bought goods for resale from P Ocean 440 230 340 160 260 1,500 17th Paid cheque on account to R Sevier 500 Received cheque on account from A Britton 400 18th Cash sales 550 Office expenses paid in cash 60 19th Paid wages in cash 160 22nd S Boatman paid on account by cheque 50 Paid P Ocean by cheque 900 Cash sales 850 24th Wages paid in cash 160 Office expenses paid in cash 50 Withdrew cash for personal use 400 25th Paid excess cash into bank account Inventory on hand 30 April cost 3,500