Reference no: EM132772886

Mr. Abdullah has started business as a trader on 1st  February 2020. The following transactions and events of trading for his first month are as follows:

Date                                 Transaction

1st February He sets up a business as a sole trader by introducing £400,000 into a business bank account.

2nd February He purchases a delivery van for £14,000, paid in cash.

3rd February He pays rent for a shop, £2,400 in cash.

4th February He purchases goods for resale costing £80,000 on credit from supplier Nasser (N00123).

5th February He sells goods for £50,000 on credit to customer Kasim (SL0897).

6th February He pays energy bill, £320 in cash.

7th February He sends out credit note to customer Kasim for goods returned for £1,600 (CN0122).

8th February He purchases goods costing £60,000 on credit from supplier Jaffar (JR3347).

9th February He sells goods for £110,000 on credit to customer Ahmed (SL0898).

10th February He receives payment of £48,400 from customer Kasim. (SL0897).

11th February He pays supplier Nasser £78,000, making use of the cash discount for swift payment.

12th February He sells goods for £4,000 in cash.

Required:

Problem 1- Enter the following transactions into the cash book and other appropriate day books

Problem 2- Post the transactions directly to the appropriate nominal ledger accounts.

Problem 3- Prepare the trial balance as of February 29, 2020.