Question

James OConnor is a sole-trader who began his furniture retail business in January 2018

1/1/2018 James opened a business bank account and lodged Euro 60,000 of his own money into it.

1/1/2018 Mr. OConnor leased a premises from where he intended to sell his furniture. The rent costs for the year is 12,000 and James paid the landlord 1,000 to cover Januarys rent

2/1/2018 James purchased furniture for re-sale for 12,000 and paid by cheque

2/1/2018 James purchased fixtures and fittings for the business for 6,000

4/1/2018 James bought a van for the business for 25,000

5/1/2018 Sales for furniture amount to 3,500, 6,400, and 2900 and all were lodged to the bank.

Write up all the transactions above in the nominal ledger and extract a trial balance, and profit and loss account and a balance sheet as at 31/1/2018,