Bilal is a trader. He buys goods on credit and for cash. He sells goods on a cash basis only. The following transactions took place in April 2020. April 4 Bought goods on credit from Milly, list price $320, subject to a trade discount of 20% 5 Bought goods on credit from EHL Limited, $500 6 Bought stationery, $145, paying by cheque 8 Cash sales, $280, were paid immediately into Bilal's bank account 10 Paid $128 cash to Milly 12 Cash sales, $110 13 Bought goods on credit, $250, from Todd who offers 4% cash discount for payments made within 14 days 17 Bought office equipment, $500, paying by bank transfer 21 Paid by cheque for the goods purchased from Todd on 13 April after deducting the cash discount 24 Paid $485 to EHL Limited by telephone transfer, having deducted 3% cash discount 28 Sold old office equipment for $50 cash REQUIRED

1. (a)Prepare the purchases journal for April 2020. Total the journal and indicate the ledger account to which the total would be posted. Bilal Purchases journal Date Details $ $ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................ ......................... ...................................................... ................ ................[4]
2. (b)Complete Bilal's cash book on the page opposite. Balance the cash book and bring down the balances on 1 May 2020. Bilal Cash Book Date Details Discount allowed $ Cash $ Bank $ Date Details Discount received $ Cash $ Bank $ 2020 2020 April 1 Balance b/d 160 1960 ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................ ......................... ........................................ ..................... ................ ............... ......................... ........................................ ........................ ................ ................[12]
3. (c)Name one accounting principle applied by Bilal in each of the following situations. accounting principle The double entry for the posting of the purchases journal entries is completed by posting the individual amounts to the purchases ledger. The purchase of goods on 5 April did not include goods costing $55 which Bilal bought for his own use. The stationery purchased on 6 April had been recycled. This is expected to improve the reputation of the business. Reputation is not recorded in the accounting statements. The value of office equipment shown in the financial statements was based on its purchase price.[4]