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Michael owns and manages a small business which sells organic beauty products to high street shops. Michael sells to the shops on credit at 3
Michael owns and manages a small business which sells organic beauty products to high street shops. Michael sells to the shops on credit at days credit terms. Michael manages all aspects of the business, including ordering, delivery and managing the accounts. The business accounts are balanced at the end of each month, and the transactions are posted daily.On July, the balances on Michaels general ledger accounts were as follows:Account nameDebit Credit Capital Van at net book valueBank Receivables control Payables control On July, the debit balances on the receivables ledger accounts were as follows:Receivables ledger accountsShampooSoapShower GelTotalOn July, the credit balances on the payables ledger accounts were as follows:Payables ledger accountsLemonRoseTotalDuring July, the following transactions took place:NoDateAmount Transaction JulyMichael pays the business rent from his personal bank account JulyMichael receives payment from shop Shampoo in part settlement of amounts outstanding JulyMichael sells goods to shop Soap on days credit terms JulyMichael receives payment from shop Shower Gel in full settlement of the amount outstanding JulyMichael purchases goods from supplier Lemon on days credit terms JulyMichael pays to supplier Lemon by bank transfer in part settlement of amounts outstanding JulyMichael pays by bank transfer the full amount outstanding on the account of supplier Rose JulyMichael sells goods to shop Shampoo on days credit termsRequired:aSet out Michaels general ledger accounts and the receivables and payables ledger accounts on July.
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