The following balances were taken from the books of Dilshan on 1 September 2010: $ Insurance 280 Dr Gul & Co 450 Dr The following transactions took place during September 2010: September 1 Dilshan paid, by cheque, the annual insurance premium, $360, for the year to 31 August 2011. September 15 Dilshan sold, on credit to Gul and Co, goods with a list price of $1600 and allowed 15% trade discount. September 20 Gul & Co paid the balance at 1 September 2010 less 2% cash discount. Dilshan prepared his financial statements (final accounts) on 30 September 2010.

1. (a)(i)Name an alternative format to 'T' accounts.[1]
2. (a)(ii)State one benefit of this format compared with 'T' accounts.[2]
3. (b)Prepare the following ledger accounts for the month of September 2010. Make any necessary transfers to the income statement (profit and loss account). Balance the accounts and bring down the balance. Insurance account Gul & Co account[10]
4. (c)State in which of Dilshan's ledgers the following accounts would appear. Account Ledger Insurance Gul & Co[2]
5. (d)(i)Name the document which was sent to Gul & Co recording the transaction of 15 September 2010.[1]
6. (d)(ii)Name the book of prime (original) entry in which Dilshan recorded this transaction.[1]
7. (e)(i)Explain why Dilshan did not include all of the insurance paid on 1 September 2010 in his income statement (profit and loss account) for the year ended 30 September 2010.[2]
8. (e)(ii)State the accounting principle that Dilshan applied.[1]