Following are the transactions of Taki traders for the month

Following are the transactions of Taki traders for the month of June 2020:

June 01: The business owner paid €40,000 into the business account. June 01: Bought goods for resale €7,000 paying by cheque.

June 01: Bought a vehicle for €15,000 paying by cheque.

June 02: Paid rent €3,000 paying by cheque.

June 03: Paid insurance €2,200 paying by cheque.

June 04: Bought goods for resale €6,000 paying by cheque.

June 05: Sold goods for €4,500 and immediately banked the cheque. June 06: Paid wages €2,400 paying by cheque.

June 07: Bought goods for resale €8,000 paying by cheque.

June 08: Sold goods for €6,500 immediately banking the cheque.

June 20: Paid business rates €3,900, paying by cheque.

June 30: Sold goods for €2,000, immediately banking the cheque.

Required

(a) Write up the above transactions in the appropriate ledger accounts and balance them off.

(b) Ledgers help to organize accounting information into categories normally known as ‘’classes’’. With examples explain the nature and differences between revenue and capital ledgers

(c) Using two revenue and capital ledgers, explain how you will treat them in the trial balance

(d) Explain the treatment of the proprietor’s additional contribution to an already existing business. In addition, explain the underlying accounting principle you will apply in answering this question

(e) Prepare a trial balance as at the close of business on June 30th