Set out ediths general ledger accounts

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Reference no: EM133359973

Edith owns and manages a small business which sells organic fruit and vegetable boxes to high street cafés. Edith sells to the cafés on credit at 30 days credit terms. (Edith manages all aspects of the business, including ordering, delivery and managing the accounts.) The business accounts are balanced at the end of each month, and the transactions are posted daily.

On 1 September the balances on Edith's general ledger accounts were as follows:

Account name	Debit (£)	Credit (£)
Capital		73,000
Van (at net book value)	40,000
Bank	1,500
Receivables control	72,000
Payables control		40,500
	113,500	113,500

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

Receivables ledger accounts	£
Sage	16,000
Parsley	32,250
Dill	23,750
Total	72,000

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

Payables ledger accounts	£
Apple	11,111
Pear	29,389
Total	40,500

During September, the following transactions took place:

No.	Date	Amount (£)	Transaction
1	3 September	2,500	Edith pays the business rent from her personal bank account.
2	5 September	8,500	Edith receives payment from customer Sage in part settlement of amounts outstanding.
3	8 September	6,000	Edith sells goods to customer Parsley on 30 days credit terms.
4	15 September	23,750	Edith receives payment from customer Dill in full settlement of the amount outstanding.
5	18 September	9,500	Edith purchases goods from supplier Apple on 30 days credit terms.
6	21 September	2,500	Edith pays to supplier Apple by bank transfer in part settlement of amounts outstanding.
7	25 September	29,389	Edith pays by bank transfer the full amount outstanding on the account of supplier Pear.
8	30 September	10,000	Edith sells goods to customer Sage on 30 days credit terms.

Required:

a.Set out Edith's general ledger accounts and the receivables and payables ledger accounts at 1 September.

Reference no: EM133359973

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