You employ a very inexperienced book-keeper who, since you started in business a few days ago, has recorded the following in your accounts:

Required

 1 Re-write the accounts as they should have been entered using the following blank T-accounts, and 

2 Prepare a balance sheet as at 30 September from the information portrayed by the revised accounts. Use the blank balance sheet provided.

Transcribed Image Text:

Cash account 1 Sept. Capital 12,000 3 Sept. Office furniture 700 7 Sept. Machinery 1,000 16 Sept. Office furniture 100 25 Sept. Capital 2,000 16 Sept. Strong Tools Ltd 4,550 28 Sept. Bank 3,500 30 Sept. Machinery 1,500 Capital account 1 Sept. Cash 12,000 25 Sept. Cash 2,000 Office furniture 16 Sept. Cash 100 3 Sept. Cash 700 Machinery 7 Sept. 30 Sept. Cash Cash 1,000 1,500 Tools 12 Sept. LTS Ltd 5,000