Question: On 1st July, 1962, B. Hoad paid £2,000 into his business as capital. The following transactions took place:
July 3 Purchased Motor Van for £800.
6 Purchased goods on credit from Vale & Co., £700.
8 Paid Rent £40.
14 Purchased goods on credit from B. Archall, £300.
16 Sold goods for cash, £200.
18 Sold goods on credit to D. Fale, £400.
21 Paid for Petrol and Oil, £20.
23 Sold goods on credit to G. Jones, £600.
25 Paid Vale & Co. £680 in full settlement.
30 Received £350 from D. Fale but was informed that it would not be possible to collect any more of the debt.
31 Paid Salaries, £100. Goods, invoice price £80, were returned by G. Jones. Provide for Depreciation on the Motor Van, £20.
Make the requisite entries in the accounts of B. Hoad and take out a Trial Balance.