Frank owns and manages a small business, which sells doughnuts to various cafs. Frank manages all aspects of the business, including delivery and collection of the products. The business accounts are balanced at the end of each month.

On 1 April the balances on his business accounts were as follows:

Account name	Debit ()	Credit ()
Capital		40,000
Van	25,000
Bank	10,000
Receivables	17,000
Payables		12,000
	52,000	52,000

During April, the following transactions took place: (Note that all cash payments and receipts are through the business bank account.)

No.	Date	Amount ()	Transaction
1	2April	450	Frank pays cash for advertising.
2	3April	4,400	Frank pays by bank transfer the amount due to a supplier.
3	7April	800	Frank withdraws cash for personal use.
4	9April	2,000	Frank receives payment from a receivable.
5	11April	120	Frank pays by debit card for petrol.
6	15April	1,800	Frank receives payment from a receivable.
7	18April	750	Frank pays insurance by business debit card.
8	20April	2,500	Frank purchases products for resale, agreeing 30 days credit terms.
9	21April	1,900	Frank invoices a new customer on 30 days credit terms.
10	30April	2,100	Frank purchases products for resale and pays by cheque.

Required:

• i.Set out Frank's general ledger accounts at 1 April.

• ii.Continuing on, post to the relevant accounts the ten transactions that took place in April.

• iii.Balance off the general ledger accounts.

• iv.Present the trial balance at 1 May.

• v.Frank has not accounted for depreciation. Using your knowledge of accrual accounting, explain why a business should depreciate non-current assets.