Warren owns and manages a small business, which sells pet supplies to high street shops and market traders. Warren sells to customers on credit at 30 days credit terms. (Warren manages all aspects of the business, including delivery and collection of the pet supplies.) The business accounts are balanced at the end of each month, and the transactions are posted daily.

On 1 March the balances on his accounts were as follows:

Account name Debit () Credit ()

Capital 88,000

Van 30,000

Van - accumulated depreciation 6,000

Bank 17,280

Receivables control 55,850

Payables control 9,130

103,130 103,130

On 1 March, the debit balances on the receivables ledger accounts were as follows:

Receivables ledger accounts

Adam 12,000

Mercy 27,930

Sherwood 15,920

On 1 March, the credit balances on the payables ledger accounts were as follows:

Payables ledger accounts

Bran 4,000

Gary 2,350

Wendela 2,780

During March, the following transactions took place:

No. Date Amount () Transaction

1 2 March 6,000 Receives payment from customer Adam in part settlement of amounts outstanding

2 3 March 2,500 Warren sells goods to customer Adam on 30 days credit terms

3 6 March 2,000 Warren pays by bank transfer part of the amount outstanding on the account of supplier Gary

4 7 March 1,800 Warren pays the business rent from his personal bank account

5 10 March 27,930 Warren receives payment from customer Mercy in full settlement of the amount outstanding

6 15 March 1,500 Warren purchases goods from supplier Bran on 30 days credit terms

7 17 March 11,000 Warren sells goods to customer Mercy on 30 days credit terms

8 18 March 500 Warren buys a laptop computer for use in the business paying from the business bank account

9 25 March 2,780 Warren pays by bank transfer the full amount outstanding on the account of supplier Wendela

10 30 March 2,000 Warren pays supplier Bran in part settlement of amounts outstanding

Required:

a. Set out Warren's general ledger accounts and the receivables and payables ledger accounts at 1 March.

b. Continuing on, post to the relevant accounts the 10 transactions that took place in March. Remember that postings are made daily. (No entries are required for any new depreciation for the period.)

c. Balance off the general ledger accounts and the receivables and payables ledger accounts. Make sure that the balance on the receivables control account agrees with the total of the balances on the personal accounts in the receivables ledger. Do the same for the payables control account and the personal accounts in the payables ledger. Show all relevant details for all T-accounts.

d.Present the trial balance at 1 April.