Savvas is a supplier of goods to Akmal. Savvas allows 15% trade discount on all purchases made by Akmal. The following transactions took place in September 2011. September 1 Akmal owed $1500 to Savvas. September 8 Akmal purchased goods from Savvas with a list price of $800. September 10 Akmal returned some of the goods purchased on 8 September with a list price of $240. September 25 Akmal sent a cheque in full settlement for the amount owing on 1 September, less 4% cash discount.

1. (a)Write up the account of Savvas in the ledger of Akmal. Bring down the balance on 1 October 2011. Akmal Savvas account[7]
2. (b)State one reason why Savvas offers Akmal a trade discount.[2]
3. (c)State the name of the document that Savvas would send to Akmal for the return of goods on 10 September 2011.[1]
4. (d)Place a tick (√) under the correct heading to show the ledger in which Akmal would record each of the following accounts. Item (i) has been completed as an example. Account (i) Sales (ii) Savvas (Supplier) (iii) Heat & light (iv) Capital (v) G.R.G. Ltd (Customer)[4]
5. (e)Complete the table below to show the effect of each transaction on the assets, liabilities and capital of Akmal. The first transaction has been completed as an example. Assets Liabilities Capital (i) Purchased goods on credit $130 +$130 +$130 No effect (ii) Goods costing $800, sold on credit for $1130. (iii) Paid creditor $500 by cheque, less 3% cash discount.[6]