Task 1 Distinguish between financial accounting and management accounting, stating the main differences between these types of accounting. Explain clearly the difference between capital expenditure and revenue expenditure. Descibe the accounting cycle and eplain the various steps. You are to open the books of Baba, a trader, via the journal to record the assets and liabilities, and are then to record the daily transactions for the month of May. A trial balance is to be extracted as on 31 May 2020 2020 May 2 1 Assets : Premises RM34,000 ; Van RM5,125; Fixtures RM810; Inventory RM6,390 ; Accounts Receivable : P.Mullen RM140 ; F. Lane RM310; Cash at bank RM6,240; Cash in hand RM900. Liabilities : Accounts Payable ; S. Hood RM215; J.Brown RM640. 1 Paid storage costs by cheque RM40. Goods bought on credit from : S. Hood RM145; D. Main RM206 ; W. Tone RM96 ; R. 2 Foot RM66. 3 Goods sold on credit to : J. Wilson RM112 ; T. Cole RM164 ; F. Syme RM208 ; J. Allen RM91 ; P. White RM242 ; F. Lane RM90. 4 Paid for motor expenses in cash RM60. 7 Cash drawings by proprietor RM150. Goods sold on credit to : T. Cole RM68 ; J. Fox RM131. 11 Goods returned to Baba by: J. Wilson RM32 ; F. Syme RM48. 14 Bought another van on credit from Abel Motors Ltd RM4,850. 16 The following paid Baba their accounts by cheque less 5 per cent cash discount : P. 9 Page 5 Mullen ; F. Lane; J. Wilson ; F. Syme 19 Goods returned by Baba to R. Foot RM6. 22 Goods bought on credit from : L. Mole RM183 ; W. Wright RM191. 24 The following accounts were settled by Baba by cheque less 5 per cent cash discount: S. Hood; J. Brown; R. Foot 27 Salaries paid by cheque RM740. 30 Paid business rates by cheque RM140. 31 Paid Abel Motors Ltd a cheque for RM4,850. Paid rent by cash Rm 250. Paid stationery by cash Rm57 Loan to Steven by cheque Rm 830