a. July 1 Started in business with £20,000 in the bank. 2 RHughes lent us £5,000 in cash. 3 Bought goods on credit from B Brown £1,530 and I Jess£4,162. 3 Sold goods for cash £1,910. 6 Took £200 of the cash and paid it into the bank. 6 Sold goods on credit to H Rise £1,374. 8 Sold goods on credit to P Taylor £341. 9 Bought goods on credit from B Brown £488. 10 H Rise returned goods to us £65. Enter the following transactions in the accounts of L Linda: 20X7 Discount received 14,080 Wages and salaries 622,000 Rates 49,000 Insurance 35,600 General expenses 81,200 Trade debtors 368,000 Trade creditors 322,400 Bank overdraft 80,400 Stock in trade, 1 January 2008 122,000 Land and buildings at cost 1,700,000 11 Sold goods on credit to G Pate £535 and R Sim £262. Plant and machinery at cost 1,230,000 12 We returned goods to B Brown £94 13 Bougbt van on credit from Aberdeen Cars Ltd £4,370. 18 Bought office furniture on credit from J Winter Ltd £1,800. 19 We returned goods to I Jess £130. 20 Bouabt goods for cash £390. 22 Goods sold for cash £110. 23 Paid money owing to B Brown by cheque £1,924. 24 Goods returned to us by G Pate £34. 26 Returned some of office furniture costing £180 to J Winter Ltd. 27 L Linda put a further £2,500 into the business in the form of cash. Motor vehicle at cost 562,000 Drawings 208,200 Cash in hand 40,200 Provision for depreciation: motor vehicle 112,400 Plant & machinery 307,500 5,976, 160 5,976,160 Notes: 1. Stock in trade on 31 December 2008 amounted to Shs. 148,400. 2. Rates paid in advance as at 31 December 2008 amountedto Sts. 7000. 3. Outstanding electricity bill as at 31 December 2008 (this induded in general expenses) amounted to Shs.3, 580. 4. Debtors include an irrecoverable amount of Shs 5,600. 30 Paid Aberdeen Cars Ltd £4,370 by cheque. 31 Bought office furniture for cash £365. 5. Afive per cent provision for doubtful debts is to be made on the recoverable debtors. Depreciation is to be provided on the motor vehide and plant and machinery at the rates of 20% and 25% respectively on the reducing balance method. No depreciation is to be provided on land and building. Included in the wages and salaries is an amount of shs.62, 000 paid to the domestic workers of Mr. Brian Kamau 6. The following trial balance was edracted from the books of Brian Kamau a sole trader at 31 December 2008. 7. Outstanding wages and salaries as at 31 December 2008 amounted to Shs 24,800. Shs Shs. 3,165,620 Capital, 1 January 2008 Reauiced. Income statemert for the year ended 31 December 2008 Purchases 923,600 a) Sales Purchase returns Sales returns 1,968, 160 5,600 b) Statement of financial position as at 31 December 2008. 16,160 Discount allowed 18,200