Reference no: EM131385376
Enter the following transactions in the ledger of A. Baker and prepare a trial balance at 31 May, together with a calculation of the profit for the month and a statement of financial position at 31 May.
May
1 Started in business with £1,500 in the bank and £500 cash.
2 Purchased goods to the value of £1,750 from C. Dunn, to pay within 60 days.
3 Bought fixtures and fittings for the bakery for £150, paying by cheque.
6 Bought goods on time from E. Farnham for £115.
10 Paid rent of £300 paying cash.
12 Bought stationery - cash book and invoices -for £75 - paying by cash.
14 Sold goods on time, value £125, to G. Harlem.
20 Bought an old van for deliveries for £2,000 on time from I. Jumpstart.
30 Paid wages of £450 net for the month by cheque.
31 Summarised cash sales for the month and found them to be £2,500. Took a cheque for £500 as own wages for the month. Banked £2,000 out of the cash sales over the month.
31 Closing inventory was £500.
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