The following account appears in the ledger of Dawn Gwinnett:

Denise Hathersmith Account 20-6 £

1 Jan Balance b/d 500.00 12 Jan Goods 1,800.00 2,300.00 Feb 1 Balance b/d 1,760.00 20-6

£

7 Jan Bank 475.00 7 Jan Discount 25.00 20 Jan Returns 40.00 31 Jan Balance c/d 1,760.00 2,300.00 Answer the following questions relating to the above account:

(a) On 1 January was Denise Hathersmith a debtor or a creditor of Dawn Gwinnett?

(b) On 12 January did Denise Hathersmith purchase or sell goods?

(c) Who received the cheque on 7 January?

(d) What rate per cent of discount was allowed on 7 January?

(e) Was the discount on 7 January trade or cash?

(f) Does Denise Hathersmith regard the returns on 20 January as returns inwards or returns outwards?

(g) If the debt owing on 1 February was settled on 9 February, less 2V2 per cent discount:

(i) What was the amount of discount?

(ii) What was the amount of the cheque?