Chi Knitwear Ltd is an old-fashioned firm with a handwritten set of books. A Trial Balance is extracted at the end of each month, and a Statement of income and a Statement of financial position are computed. This month, however, the Trial Balance will not balance, the credits exceeding the debits £1,536. You are required to help and after inspection of the ledgers discover the following errors:

(i) A balance of £87 on a customer’s account has been omitted from the schedule of debtors, the total of which was entered as Trade receivable in the Trial Balance.

(ii) A small piece of machinery purchased for £1,200 had been written off to repairs.

(iii) The receipt side of the Cash Book had been undercast by £720.

(iv) The total of one page of the Sales Day Book had been carried forward as £8,154, whereas the correct amount was £8,514.

(v) A credit note for £179 received from a supplier has been posted to the wrong side of his account.

(vi) An electricity bill for the sum of £152, not yet accounted for, is discovered in a filing tray.

(vii) Mr Smith, whose past debts to the company had been the subject of an Allowance for doubtful debts, at last paid £731 to clear his account. His personal account has been credited but his cheque has not yet passed through the Cash Book.

Required:

(a) Write up the Suspense account.

(b) Set out the journal entries correcting the errors.