Prepare the books.
George graham has been operating a small business for the past five years. He planning to expand the business and hopes to obtain a loan from the bank to do so. He is asking you to get his books in order so that he can have his financial reports to take to the bank.
The following information relates to his balance on the 1st December 20004, which is the last month of his financial period.
Debtors:
Cash in hand $1,800
Cash in Bank $12,000
Motor Van $200,000
Fixture and fittings $40,000
Stock of Goods $16,000
M.Brown $1,600
N. Newman $800
C. Cowan $920
B. Black $2,000
Creditors:
J.James $1,832
A.Bowen $3,200
T.King $1000
Transactions during month of December consist of following:
Dec 1 Purchased goods on credit from T. King $800, A. Gooden $2,240, J. James $1,520 and W. Saunders $2,760.
Dec 2 Sold goods on credit to the following persons: B. Black $2,240 , C. Cowan $3,120, D. Dwyer $3,920, H. Watson $1,920, G. Gray $4,720 N.Newman$1,600
Dec 3 Cash Sales $4,000.
Dec 4 Paid cash into bank $3,200.