You are a trainee accountant working for a small firm of accountants. You have been asked to work on a new client, John Oteng. John recently opened a small shop through rented premises. John has supplied you with the following transactions which have taken place during January 2017, his first month of trading.

1^stJanuary

John opened a business bank account with GH10,000 of his own money.

2^ndJanuary

GH20,000 bank loan is paid directly into his bank account.

3^rdJanuary

John bought office equipment GH17,500 and paid by cheque.

4^thJanuary

GH2,000 rent paid by cheque.

5^thJanuary

Inventory is purchased on credit from Gyato Limited for GH5,000.

6^thJanuary

Inventory is purchased by cheque from Don-Bortey Limited for GH3,000.

13^thJanuary

Cash sales deposited at the bank was GH500.

15^thJanuary

GH100 cheque paid for an advert in the local newspaper.

19^thJanuary

Cash sales deposited at bank was GH1,200.

20^thJanuary

GH2,000 cheque paid to Gyato Limited.

27^thJanuary

Cash sales deposited at the bank was GH2,500

Required:

1. Complete the relevant nominal ledger accounts for the above transactions and extract a trial balance as at 31^stJanuary, 2017.(9 marks)
2. Write out the double entry required for the goods and the cash taken byJohn during January, 2017.(4 marks)
3. List and explain four (4) books of prime entry.