Fashran sells goods to Hajar. On 1 April Hajar owed Fashran $2100. The following transactions occurred in April 2014. 5 April Fashran sold goods on credit to Hajar, list price $2000, less 20% trade discount. 7 April Hajar returned goods purchased on the 5 April, list price $240. 18 April Hajar paid the balance of her account at 1 April and was allowed 2% cash discount. REQUIRED

1. (a)(i)Explain the difference between book-keeping and accounting.[2]
2. (a)(ii)Explain the accounting entity principle.[2]
3. (b)Prepare the account of Hajar in the ledger of Fashran for April 2014. Balance the account and bring down the balance. Hajar account Date Details $ Date Details $[5]
4. (c)Name the document that Fashran will issue on the following dates: Date 5 April Fashran sold goods on credit to Hajar 7 April Hajar returned goods to Fashran purchased on the 5 April 30 April Fashran issues a summary of Hajar's account for the month of April Document[3]
5. (d)State the sub division of the ledger in which the account of Hajar would appear.[1]
6. (e)The following balances were extracted from the books of Fashran on 30 April 2014. Trade payables $6450 Trade receivables $9230 Revenue $68400 Purchases $29800 Inventory 1 May 2013 $5100 Expenses $22350 Bank overdraft $830 Non-current assets $24000 Provision for depreciation – Non-current assets $7800 REQUIRED Prepare the trial balance showing Fashran's capital at 30 April 2014. Fashran Trial Balance at 30 April 2014 Dr $ Cr $[5]