On 1.6.X1 D Alex commenced a business dealing in IT software. He paid £50,000 into the business bank account and the following transactions took place during the first week of June.

Required

(a) Record the above transactions in the ledger accounts of D. Alex maintaining separate cash and bank accounts.

(b) Balance off the ledger accounts as at 5 June X1 and extract a trial balance.

(c) Prepare the income statement for the week ended 5 June X1 and close off all revenue and expense accounts.

(d) Prepare the balance sheet as at 5 June X1.

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1 June 2 June Purchased premises for 25,000 from previous owner including 6,000 for furniture and fittings. Purchased inventory for 10,000 and further furniture and fittings 2,000. All transactions above were completed by cheque.. Withdrew cash from bank for shop use 400 Paid for sundry incidentals 90 Sold goods for cash 300 Sold goods on credit to Roberts 100 3 June Bought goods for resale on credit from Davids 600 Sold goods for cash 550 4 June Sold goods for cash 400 Sold goods on credit to Richards 350 Paid office expenses in cash 70 5 June Received cheque from Roberts 60 Paid cheque on account Davids 250 Sold goods for cash 200 Sold goods on credit Martin 480 Bought goods for cash 250 Paid all excess cash into bank 6 June Stock on hand at cost 9,500