Adil's transactions in August 2014 included the following. August 2 Purchased goods on credit from Tiara, $1500, less 20% trade discount. August 5 Returned goods to Tiara, list price $300. August 7 Paid a cheque to Tiara, $500, after deducting $6 cash discount. August 9 Sold non-current assets on credit to D Costa, at book value, $4000. REQUIRED On 31 August 2014 Adil had the following balances in his books. He was aware that there were some book-keeping errors and that the trial balance would not balance. Non-current assets $9500 Trade payables $8500 Trade receivables $7250 Inventory $3850 Bank overdraft $1600 Purchases $14400 Revenue $22000 Bank loan $2000 Capital $3000

1. (a)Complete the following table for the above transactions. The first item has been completed as an example. Date | Source document | Book of prime entry | Effect on owner's ---|---|---|--- August 2 | Purchase invoice | Purchases journal | No effect August 5 | | | August 7 | | | August 9 | | |[9]
2. (b)State the sub division of the ledger containing each of the following accounts: Account | Sub division of the ledger ---|--- Purchases | Tiara | Non-current assets | D Costa |[4]
3. (c)Complete the trial balance at 31 August 2014, balancing the trial balance by the use of an appropriate account. Adil Trial Balance at 31 August 2014 Debit | Credit ---|--- $ | $ Non-current assets | Trade payables | Trade receivables | Inventory | Bank overdraft | Purchases | Revenue | Bank loan | Capital | [5]