Tej is a trader who sells goods on credit. His year end is 28 February. Tej provided the following information. At 1 March 2020 Trade receivables Other receivables (rent prepaid) For the year ended 28 February 2021 Rent charge for the year Cheque payments for rent 30 June 2020 At 28 February 2021 Trade receivables $ 6250 300 3900 1950 2100 7000 30 November 2020 The provision for doubtful debts was 4% of trade receivables at 1 March 2020 and 6% of trade receivables at 28 February 2021.

1. (a)Prepare the rent payable account for the year ended 28 February 2021. Balance the account and bring down the balance on 1 March 2021.[6]
2. (b)Prepare the provision for doubtful debts account for the year ended 28 February 2021. Balance the account and bring down the balance on 1 March 2021.[4]
3. (c)Name the accounting principle applied when the income statement is adjusted for rent prepaid.[1]
4. (d)(i)Explain how the realisation principle is applied to the recording of Tej's credit sales.[2]
5. (d)(ii)Explain how the prudence principle is applied to the maintenance of Tej's provision for doubtful debts.[2]
6. (e)Advise Tej whether or not he should charge interest on overdue accounts. Justify your answer.[5]