Chris runs a shop in Bristol, Shoe Shop. The shop sells fashionable shoes and accessories. On 30 June 2018 his business assets and liabilities were:

Cash 125

Bank balance (overdraft) 11,000

Trade receivables 16,750

Trade payables 14,625

Inventory (at cost) 40,575

Capital 31,825

Chris decided to expand the business and sell clothes.

On 1 July he: 1. Arranges to rent the adjoining shop premises. His total monthly rent is now 625 per calendar month. (See list of transactions for payment of rent).

2. Borrows 20,000 from his bank, and uses it to buy a van for the business. This is a special business loan, which is repayable in three years time and carries interest at 13%.

3. Pays 6,250 out of his personal bank account to have the new premises refitted. His summarised transactions for the rest of the year are as follows (they are not in chronological order):

4. Bought stock on credit, 489,625.

5. Bought stock for cash, 16,550.

6. Sold stock which cost 63,000, for 84,000 cash.

7. Paid creditors 477,225 by cheque.

8. Sold stock which cost 394,500, for 526,000 on credit.

9. Collected 517,750 from his debtors.

10. Returned some damaged goods to his suppliers. These cost 8,500, but Chris had not yet paid for them.

11. Paid the following (by cheque):

Rent (see 1.) 7,500

Shop wages 35,000

Interest (see 2.) 2,600

Electricity 4,500

Telephone 1,750

Other expenses 3,050

Holiday 1,000

12. Personal drawings were 500 per month. Shop takings were banked daily. On June 30th 2019 cash in the till was still 125.

Required :

1. Double-entry accounts reflecting the above transactions. (Hint: as a constant float of 125 is maintained in the shop till, you may treat cash transactions as movements on the business's bank account.) You should show all workings clearly.

2. A trial balance at 30 June 2019. (You are not required to prepare a statement of financial position or income statement. However the suggested solution will include these statements for completeness).