Question Details

accounts and trial balance 
 
William Walton owns a shop. Two months after he started his business, his balance sheet was as below at 28 February 2009 
 
Balance sheet of William Walton at 28 February 2009
 
                                          £                   £ 
Fixed assets at cost: 
 
Property                      10,000 
Fixtures                         5,000             15,000 
 
Current assets: 
 
Stock                             7,000 
Debtors                         3,500 
Bank                              1,500             
12,000 
 
Less current liabilities:
 
Creditors                      4,000              8,000 
23,000
 
Non-current liabilities: 
 
Bank loan                                            3,000 
 
Net assets                                           20,000 
 
Owner- capital                                   20,000
 
 
In March 2009 the following transactions took place:
 
1.	Purchased goods on credit from Harry Hodder for £1,800 
2.	Cash sales of £1,000 
3.	Sold items for £2,000 on credit to Anne Arnold 
4.	Paid supplier Harry Hodder £1,800 by bank transfer 
5.	Debtor Ben Brown paid £2,000 by cheque
6    Debtor Anne Arnold paid £1,800 by bank transfer making use of a 10% settlement discount 
7    Purchased stationery for £130 paying by debit card 
8    Sold goods for £2,600 on credit to Denise Dupree 
9    Sold goods for £2,200 on credit to Erick Ericksson 
10  Purchased goods on credit from Harry Hodder for £3,000 
11  Received goods returned by Denise Dupree for £100 
12  Returned goods to Harry Hodder for £300 
13  Debtor Denise Dupree paid £2,500 by cheque 
14  On 31 March William paid £75 quarterly interest on the bank loan 
15 On 31 March William withdrew from the business bank account £900 for his own use 
16 On 31 March William paid £2,000 to supplier Stan Smith by bank transfer 
17 On 31 March William recorded depreciation of his fixtures using an annual rate of 10% per annum 
 

 (a) Show the above transactions in the form of ledger accounts. 
(b) Prepare the trial balance as at 31 March 2009. ( 
Note 1: William uses sales and purchases ledgers. 
Note 2: William does not use a stock or cost of sales account to record purchases. 
Note 3: William posts his day books daily. 
Note 4: William does not depreciate his property.