Assignment:
L. Mann started business with £5,000 in the bank on 1 April. The business transactions during the month were as follows:
(i) Took £300 out of the bank for petty cash
(ii) Bought a second-hand van and paid by cheque £3,500
(iii) Bought goods on credit from A. Supplier for £2,500
(iv) Sold goods for cash for £300
(v) Sold goods on credit for £1,000 to B. Safe
(vi) Returned faulty goods to A. Supplier £500
(vii) Paid sundry expenses of £50 in cash
(viii) Paid the rent of £500 by cheque
(ix) Withdrew cash drawings of £500
Inventory at cost at 30 April was £1,250.
Provide complete and step by step solution for the question and show calculations and use formulas.