A. Blair is a dealer in sporting equipment. The following are his purchases and sales for May 2009:

May 1Blair received from S&G Ltd. a shipment of:

20 bats at $500 each

12 sets of stumps at $200 per set

8 pairs of gloves at $100 per pair

The entire shipment from S&G Ltd. was subject to a 20 per cent trade discount.

May 6Blair sold the following items on credit to Marshall:

3 bats at $800 each

6 sets of stumps at $400 per set

May 9Blair bought from Sampson's Cricket Centre

5 dozen cricket balls at $120 per dozen

May 16Blair sold the following to C. Clark on credit

4 pairs of gloves at $150 per pair

May 23Blair returned two damaged bats to S&G Ltd.

May 25Marshall paid for goods bought on May 6 and received a 5 per cent cash discount.

Required.

a. Complete Blair's sales, purchases and returns outwards journal.

b. Post from the journals to the personal accounts.

c. Post the relevant totals to the sales, purchases and returns outwards accounts in the general

ledger. Use May 31 as the transaction date.

6. Miss Sue Clear had the following transactions for her new bookstore. However, she has not

done any accounting course so she is dependent on you to assist her with January's ledger

entries.

Jan 2009

1Miss Clear invested $90,000 in the business; $50,000 was put into a bank

account whilst the balance was kept in cash.

1Paid $15,000 by cheque for furniture and fittings.

2Cash purchases of books $2,000.

2Credit purchases of books from D. Parch, $12,000.

5Return of books to D. Parch $1,000

19Cash sales $35,000

19Credit sales to L. Plonk $18,000

21Cheque received from L. Plonk $16,000, a discount was allowed to Plonk.

22Cash withdrawn from the bank for business use $500

30Cash payment to D. Parch $10,000 a discount for the balance was received.

Required:

a. Prepare the ledger accounts to record the first month's transactions for the bookstore.

b. Balance each account at January 31, 2003 and explain trial balance at that date.