Please complete the subsidiary journals for April 2025 and explain why holding too much trading stock is not advisable.

The information required to complete the subsidiary journals (Cash Receipts Journal, Cash Payments Journal, Creditors Journal, and Creditors Allowance Journal) for April 2025, including source documents and additional transaction details, is not provided in the image. Therefore, tasks 1.1 and 1.2 cannot be completed.

Here are two reasons why it is not a good idea to keep too much trading stock on hand:

1.3

• Increased storage costs: Holding excessive stock requires more warehouse space, which leads to higher rent, utilities, and maintenance expenses.
• Risk of obsolescence and damage: Large quantities of stock are more susceptible to becoming outdated, damaged, or stolen, resulting in financial losses for the business.