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Edith owns and manages a small business which sells organic fruit and vegetable boxes to high street cafés. Edith sells to the cafés on credit at 30 days credit terms. (Edith manages all aspects of the business, including ordering, delivery and managing the accounts.) The business accounts are balanced at the end of each month, and the transactions are posted daily. 
On 1 September the balances on Edith's general ledger accounts were as follows:
Account name Debit (£) Credit (£)
Capital   73,000
Van (at net book value) 40,000  
Bank 1,500  
Receivables control 72,000  
Payables control   40,500
  113,500 113,500
On 1 September, the debit balances on the receivables ledger accounts were as follows:
Receivables ledger accounts £
Sage 16,000
Parsley 32,250
Dill 23,750
Total 72,000
On 1 September, the credit balances on the payables ledger accounts were as follows:
Payables ledger accounts £
Apple 11,111
Pear 29,389
Total 40,500
During September, the following transactions took place:
No. Date Amount (£) Transaction
1 3 September 2,500 Edith pays the business rent from her personal bank account.
2 5 September 8,500 Edith receives payment from customer Sage in part settlement of amounts outstanding.
3 8 September 6,000 Edith sells goods to customer Parsley on 30 days credit terms.
4 15 September 23,750 Edith receives payment from customer Dill in full settlement of the amount outstanding.
5 18 September 9,500 Edith purchases goods from supplier Apple on 30 days credit terms.
6 21 September 2,500 Edith pays to supplier Apple by bank transfer in part settlement of amounts outstanding.
7 25 September 29,389 Edith pays by bank transfer the full amount outstanding on the account of supplier Pear.
8 30 September 10,000 Edith sells goods to customer Sage on 30 days credit terms.
Required:
a.Set out Edith's general ledger accounts and the receivables and payables ledger accounts at 1 September.

Expert Answer

Edith owns and manages a small business which sells organic fruit and vegetable boxes to high street cafés. Edith sells to the cafés on credit at 30 days credit terms. (Edith manages all aspects of the business, including ordering, delivery and managing the accounts.) The business accounts are balanced at the end of each month, and the transactions are posted daily. On 1 September the balances on Edith's general ledger accounts were as follows: Account name Debit (£) Credit (£) Capital 73,000 Van (at net book value) 40,000 Bank 1,500 Receivables control 72,000 Payables control 40,500 113,500 113,500 On 1 September, the debit balances on the receivables ledger accounts were as follows: Receivables ledger accounts £ Sage 16,000 Parsley 32,250 Dill 23,750 Total 72,000 On 1 September, the credit balances on the payables ledger accounts were as follows: Payables ledger accounts £ Apple 11,111 Pear 29,389 Total 40,500 During September, the following transactions took place: No. Date Amount (£) Transaction 1 3 September 2,500 Edith pays the business rent from her personal bank account. 2 5 September 8,500 Edith receives payment from customer Sage in part settlement of amounts outstanding. 3 8 September 6,000 Edith sells goods to customer Parsley on 30 days credit terms. 4 15 September 23,750 Edith receives payment from customer Dill in full settlement of the amount outstanding. 5 18 September 9,500 Edith purchases goods from supplier Apple on 30 days credit terms. 6 21 September 2,500 Edith pays to supplier Apple by bank transfer in part settlement of amounts outstanding. 7 25 September 29,389 Edith pays by bank transfer the full amount outstanding on the account of supplier Pear. 8 30 September 10,000 Edith sells goods to customer Sage on 30 days credit terms. Required: a.Set out Edith's general ledger accounts and the receivables and payables ledger accounts at 1 September.

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