Nominal Ledger opening balances as at August 1st 2021

Bank 10,000

Van 15,000

Fixtures and fittings 6,000

irrecoverable debts 1,000

Trade Receivables 2,000

Purchases 18,000

Sales 25,000

Trade Payables 4,000

Capital 23,000

Bob classifies his sales as either computer sales, printer sales or 'other sales'. Other sales are items such as software, paper, keyboards etc.

August 2021 Transactions

August 1st 2021
Transferred personal savings to the business bank account. Paid a deposit on the premises by cheque Completed the purchase of the business premises at High Street, Treforest, Pontypridd. The mortgage of 70,000 has been arranged with the bank. The bank repayments are 700 per month, payable by direct debit. This will go out on the 25th of each month. The payments represent a figure for interest of 585 and a repayment of capital of 115 Bob transferred his personal van to the business, valued at 6,000	50000.00 30000.00 6000.00
August 2nd
Transferred from the bank account to petty cash Purchased carpets for the office and shop from Caring Carpets Ltd on credit. Purchased goods for resale, paying from the bank account	100.00 1280.60 3,000
August 3rd
Purchased desks, chairs and filing cabinets for the office from Office Supplies Ltd	4631.20
Made the following payments by cheque BT telephone connections Insurance (for 12 months) Second hand shop equipment for the office and shop, purchased from Traders second hand office equipment Ltd Advertising , arranged by JW Promotions Ltd	150.00 423.05 1558.32 1200.00
August 4th
Purchased catalogue and promotional printing from Publicity printers Ltd on credit Purchased office stationary on credit from Highwood printers	1534.00 232.00
August 5th
Made the following credit purchases Supplier 1 Supplier 2	9472.00 3473.66

August 6th Made the following credit sales Sale of other to customer 1 Sale of other to customer 2 Sale of printers to customer 3	700.00 800.00 250.00
August 8th Made the following credit sales Sale of other to customer 5 Sale of printers to customer 4	108.10 286.35
August 9th
Made the following credit sales Sale of other to customer 1 Sale of computers to customer 6 Sale of computers to customer 2	115.00 1311.00 4222.80
August 10th
Made a credit sale to customer 4 of printers	575.00
August 11th Made a credit sale of other to customer 7	115.00
August 12th
Made a cash sale of other Transferred money from the bank to the petty cash float	58.00 85.03
August 13th
Cash sale of printer	456.30
August 14th Made a credit sale of printers to customer 5	230.00
August 16th
Purchased petrol, paying from petty cash (the only petty cash payment this month) Made a credit sale of others to customer 1 Made a credit sale of others to customer 4	18.00 150.00 400.00
August 17th
Made the following cash sales, which as immediately banked Printers Other Made a credit sale of computers to customer 3	384.23 34.50 2831.30
August 18th
Made the following credit purchases Supplier 3 Supplier 4 Supplier 1 Supplier 4 Made a credit sale of others to customer 1	452.00 650.00 400.00 387.00 103.50
August 20th Purchased a limited edition AC/DC computer in a specially designed case to celebrate the anniversary of the release of For Those About to Rock.	5000.00
August28th
Made the following credit purchases Supplier 2 Supplier 4 Paid Office Supplies Ltd by cheque Paid Caring Carpets by cheque Customer 6 paid us an amount outstanding Cash sale of other Made the following credit sales Sale of other to customer 3 Sale of other to customer 7 Sale of other to customer 6 Sale of other to customer 5 Sale of other to customer 4	62.50 33.00 4631.20 1280.60 1311.00 87.45 460.00 115.00 40.25 23.00 46.00
August 31st Bob counted the Inventory remaining on hand at 31st August 2021 and valued it a 8,246.00 Bob decides to charge depreciation on the van and Fixtures & Fittings at 20% per annum, reducing balance method.	8,246

Required:

1. Record the above transactions in the books of original entry (day books) and from there make the relevant entries in the ledgers (nominal, sales and purchases) that you consider Kenny should keep (ignore VAT). Do not forget the opening balances in the nominal ledger.

(55 marks)

2. Balance off the nominal ledger accounts and draw up a trial balance. (20 marks)