3. Mr Biashara commenced trading as a wholesaler stationer on 1 May 2000 with a capital of sh. 5…

3. Mr Biashara commenced trading as a wholesaler stationer on 1 May 2000 with a capital of sh.

5 ,000.00 with which he opened a bank account for his business.

During May the following transactions took place.

May 1 Bought shop fittings and fixtures from store fitments Ltd for sh. 2,000.00

May 2 Purchased goods on credit from Abel sh. 650.00

May 4 Sold goods on credit to Bruce sh. 700.00

May 9 Purchased goods on credit from Green sh. 300.00

May 11Sold goods on credit to Hill sh. 580.00

May 13Cash sales paid into bank account sh. 200.00

May 16Received cheque from Bruce in settlement of his account

May 17Purchased goods on credit from Kay sh. 800.00

May 18Sold goods on credit to Nailor sh. 360.00

May 19Sent Cheque to Abel in settlement of his account

May 20Paid rent by cheque sh. 200.00

May 21Paid delivery expenses by cheque sh. 50.00

May 24Received from Hill sh. 200.00 on account

May 30Drew cheque for personal expenses sh. 200.00 and assistant wages sh. 320.00 May 31Settled the account of Green.

Required

a) Record the transactions in the books of prime entry.

b) Post the entries in the ledger accounts

c) Balance the ledger accounts where necessary

d) Extract a trial balance as at 31 May 2000.