Rahman is a debtor in the books of Goldy. On 1 April 2010 the balance on the account of Rahman was $300. The following transactions related to the account of Rahman for the month of April 2010. April 6 Sold goods to Rahman, list price $500; allowed 20% trade discount. 12 Rahman returned goods bought on 6 April, list price $150. 18 Sold goods to Rahman, list price $200; allowed 15% trade discount. 30 Rahman paid the balance on his account on 1 April by cheque and was allowed 3% cash discount. On 20 April, Goldy received the following bank statement. Dr Cr Balance $ $ $ April 1 Balance b/d 650 Cr 8 Pacific Traders 1500 2150 Cr 12 Kwan 730 1420 Cr 15 Interest 12 1408 Cr 16 Credit transfer (dividends) 130 1538 Cr

1. (a)Prepare the account of Rahman in the books of Goldy for the month of April 2010. Balance the account and bring down the balance on 1 May 2010.[7]
2. (b)(i)State two reasons why trade discount was given to Rahman.[2]
3. (b)(ii)Name the book of prime entry in which Goldy will record the transaction on 12 April.[1]
4. (b)(iii)Name the document which would be issued by Goldy for the returned goods on 12 April.[1]
5. (c)Update the cash book for Goldy on 20 April. Balance the cash book on that date.[4]
6. (d)Prepare the bank reconciliation statement at 20 April.[4]