John Mason set up a business selling shoes on 1st January 2022. He invested 20,000 of his own money into the business, 18,000 into the business bank account, and the remainder kept as cash (notes and coins) in the business.

Transactions that occurred in January 2022:

01/01/2022: Paid rent for the shop by cheque: 2000

03/01/2022: Purchased inventories on credit from James Ltd: 4000

07/01/2022: Raised loan from the bank, paid directly into the bank account: 5000

10/01/2022: Purchase of shop fittings, in cash: 1500

12/01/2022: Sold goods for cash: 3500

15/01/2022: Sold goods on credit to Harry Ltd: 2500

17/01/2022: Paid James Ltd by cheque: 2500

22/01/2022: Payments received by Harry Ltd through bank transfer: 1800

24/01/2022: Paid interest on the loan through the bank: 200

27/01/2022: Other expenses paid, by cheque

31/01/2022: Drawings for personal use in cash: 1000

Question: Extract a trial balance as of 31st January 2022 and give reasoning.