Reference no: EM133003648

Question - You have extracted a trial balance and drawn up accounts for the year ended 31 Dec 2019. There was a shortage of RM78 on the credit side of the trial balance, a suspense account being opened for that amount. During 2020 the following errors made in 2019 were found:

a. RM125 received from sales of old office equipment has been entered in the sales account.

b. Purchases day book had been overcast by RM10.

c. A private purchase of RM140 had been included in the business purchases.

d. Bank charges RM22 entered in the cash book have not been posted to the bank charges account.

e. A sale of goods to Lamb RM230 was correctly entered in the sales book but entered in the personal account as RM320.

f. Saufi had taken goods amounting to RM1,200 at cost for his own use. No entries had been made in the books.

g. A credit note from Ahmad, a supplier, for RM120 was incorrectly entered in the Purchases Returns Journal as RM80.

Required -

(a) Prepare the requisite journal entries to correct the errors.

(b) Prepare the suspense account showing the correction of the errors.

(c) Prepare the Statement of Corrected Net Profit for the year ended 31 December 2019.