Question: Turner is in business as a manufacturer and the following are his transactions with Smith for the month of January, 1962:
Jan. 1 Balance due to Smith £430.
10 Bought from Smith 20 tons xyncalia at £45 per ton, less 15% trade discount.
15 Paid amount due to Smith on 1st January less 5 % cash discount.
16 Returned to Smith 3 tons of xyncalia as supplied on 10th for credit in full.
17 Bought from Smith 5 tons coranium at £22/10/- per ton.
Re-printed by courtesy of the Royal Society of Arts (R.S.A)
22 Sold to Smith 4 old Pressing machines as scrap, for £220 the lot.
28 Paid cheque to Railway £5 for carriage on goods returned on the 16th January, chargeable to Smith. 31 Bought from Smith a supply of chemical waste for £50.
You are asked to prepare from the above information Smith's account as it would appear in Turner's ledger, balancing it and bringing down the balance on the 31st January.