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Peter Keavney had the following assets and liabilities on 1 June 2009: - Assets: Building 100,000; motor vehicles 40,000; debtor (F. Flemming) 200; stock 1,000;
Peter Keavney had the following assets and liabilities on 1 June 2009: - Assets: Building 100,000; motor vehicles 40,000; debtor (F. Flemming) 200; stock 1,000; bank 20,000. - Liabilities: Creditor (G. Grimm) 500. During the month of June, Peter Keavney had the following transactions: June1: Purchased goods on credit from H. Hutton 200. June2: Sold goods on credit to F. Flemming 400. June5: Cash sales 200. June6: Received cheque from F. Flemming 200. June9: Paid wages by cheque 400. June11: Purchased goods on credit from G. Grimm 300. June15: Sold good on credit to N. Norton 800. June17: Bought a motor vehicle by cheque 12,000 (VAT inclusive). June20: Cash sales 2,000 June21: N. Norton returned goods 60. June21: Paid wages by cheque 400. June22: Bought goods by cheque 200. June23: Paid advertising by cheque 200. June25: Returned goods to H. Hutton 40. June28: Paid G. Grimm 200 by cheque. VAT is charged at 20%. Required: (a) Record the above transactions in the books of first entry and post to relevant ledger accounts. (b) Extract a trail balance at the end of June
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