Theo Paphetes, a retailer of office equipment and stationery, works from home and started his business on 1 March with £450,000 capital in cash. During the month of March, the following transactions take place:

Required 1 Record all transactions in T-accounts.
2 Prepare a profit and loss account for the month.
3 Prepare a balance sheet as at 31 March 20x6.

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Mar. 1 Buys desk for his office at home, 500, pays cash. 2 Purchases stationery from Stationery Suppliers Ltd. for 65,000, on credit. 3 Buys delivery van for 2,100, on six month's credit, from Garage Ltd. 7 Purchases further stationery from Stationery Suppliers Ltd for 10,000, on credit. 9 Cash sales of stationery 51,000. 10 Purchases office equipment (for resale) 15,000, on credit from Stationery Suppliers Ltd. 12 Cash sales of stationery 22,000. 15 Borrows 20,000 from his uncle and deposits the amount in the busi- ness's bank current account, as the whole of this amount is to be used 18 in Theos' business. The loan must be repaid within the next 12 months. Sells office equipment to James Caane for 3,000 on credit. 21 Rents a warehouse and pays 500 rent (for the month of March) by cheque. 22 Pays secretary's wages in cash, 800. 24 Pays 40,000 cheque to Stationery Suppliers Ltd in part settlement of account. 27 Pays for service of van, insurance, and tax amounting to 900, by cheque. 28 Cash sales of stationery, 15,000. 29 Sells all remaining stock of stationery and equipment for 12,000, cash. 31 Pays 500,000 cash into the business bank account.