A. Tim commenced business on 1^st June 2016 with the following transactions:

June 1 Put $20000 into the bank.

June 3 Purchased Office Furniture on credit from TFP Ltd for $3000.

June 4 Purchased goods for resale from John for $8000 less trade discount of 20%.

June 8 Returned goods to John worth $500 before trade discount.

June 10 Paid John the amount owing after deducting cash discount received of 3%.

June 15 Sold goods on credit to Robin for $12000.

June 17 Robin returned goods worth $2000.

June 19 Robin paid the amount owing by cheque after deducting 3% cash discount allowed.

June 30 Paid TFP Ltd by cheque $1500.

Required:

1. Prepare ledger accounts for Tim to record the above transactions and balance all accounts as at 30^th June 2016.
2. Prepare a Trial Balance as at 30^th June 2016 for Tim.

B. Discuss the implications of the double entry principle in book-keeping and evaluate on how it is an application of the duality concept.

Word limits: 1000 words

C. Discuss on the importance and relevance of source documents in records keeping and how they contribute to accuracy and completeness of financial records.

Word limits: 1000 words