QUESTION TWO The following are transactions of Kweku Menu, who commenced a new business on 1 June 2020

1. Started the business with capital of GHC2,500,000, paid into a business bank account.

2. Bought goods on credit from the following entities: Ellis GHC810,000; Menda Trading Ltd GHC1,305,000; Gibson GHC375,000; Dynasty GHC1,140,000; Liners ltd GHC960,000 (Total;4,590,000)

3. Sold goods on credit to; Bailey stores GHC753,000, Fastshop ltd GHC1,120,000; and Spencer Ltd GHC3,080,000. (Total GHC4,953,000)

4. Bailey Stores paid by cheque GHC723,000 taking discount of GHC30,000 for early payment. Bailey stores had not been expected to take the discount when the goods were originally sold to them.

5. Spencers paid GHC1,500,000 by cheque

6. GHC700,000 was paid to Ellis

7. The following payments was made to Gibson GHC350,000. A discount of GHC25,000 was received for early payment.

8. Paid carriage outwards GHC345,000

9. Purchases returns to Dynasty GHC400,000

10. Sales returns from Spencers GHC270,000

11. Purchases on credit from Menda Trading ltd GHC753,000; Dynasty GHC1,650,000. (Total;2,403,000) 12. Sold goods on credit to Fastshop GHC1,005,000 Kweku Menu maintains control accounts for receivables and payables in the main ledger, and accounts for individual customers and suppliers in a receivables ledger and payables ledger respectively.

Required;

a) Use T accounts to show how the relevant transactions will be recorded in the receivables control account and the payables control accounts in the main ledger of Kweku Menu in June.

b) Show the list of balances in the receivables ledger after the recording the above transactions

c) Show the list of balances in the payables ledger after recording the above transactions