F Polk runs a trading business. The business transactions during December

2017 are as follows.

1 Assets: Premises RM34,000; Van RM5,125; Fixtures RM810; Inventory

RM6,390. Debtors: P Mullen RM140; F Lane RM310. Cash at bank

RM6,240; Cash in hand RM560.

Liabilities: Creditors: S Hood RM215; J Brown RM460.

1 Paid storage costs by cheque RM40.

2 Goods bought on credit from: S Hood RM145; D Main RM206; W Tone

RM96; R Foot RM61.

3 Goods sold on credit to: J Wilson RM112; T Cole RM164; F Syme RM208; J

Allen RM91; P White RM242; F Lane RM77.

4 Paid for motor expenses in cash RM47.

7 Cash drawings by proprietor RM150.

9 Goods sold on credit to: T Cole RM68; J Fox RM131.

11 Goods returned to Polk by: J Wilson RM27; F Syme RM41.

14 Bought another van on credit from Abel Motors Ltd RM4,850.

16 The following paid Polk their accounts by cheque less 5 per cent cash

discount: P Mullen; F Lane; J Wilson; F Syme.

19 Goods returned by Polk to R Foot RM6.

22 Goods bought on credit from: L Mole RM183; W Wright RM191.

24 The following accounts were settled by Polk by cheque less 5 per cent cash

discount: S Hood; J Brown; R Foot.

27 Salaries paid by cheque RM480.

30 Paid business rates by cheque RM132.

31 Paid Abel Motors Ltd a cheque for RM4,850.

Instructions

a) Prepare journal entry for each transactions.

b) Post journal entry to ledger account.

c) Prepare a trial balance for the year ended 31st December 2017.

d) Prepare Statement of Financial Performances for the year ended 31st December

2017 .

e) Prepare Statement of Financial Position for the year ended 31st December 2017.