The following errors have been discovered in the books of Jenni. She has already prepared a draft trading and profit and loss account. These have revealed a gross profit of £107,648 and a net profit of £23,614.

1. A cheque £217 paid to G Ray has been debited to Gray.
2. Carriage inwards £126 has been debited to carriage outwards.
3. A rent payment of £572 has been credited to the rent payable account as £752.
4. Jenni’s drawings £432 have been included in wages as £342.
5. Wages account has been overcast by £1,200.

Required

a) Prepare journal entries necessary to correct the errors.
b) Prepare a suspense account to correct the errors, showing the original trial balance difference.
c) State which side of the trial balance was the larger before the discovery of the errors.
d) Prepare a statement showing the gross profit after correcting the errors.
e) Prepare a statement showing the net profit after correcting the errors.