When Debbie Brown extracted her Trial Balance at March 2012 she found that it did not agree. She opened a Suspense account, prepared her Statement of income and drew up her Statement of financial position as stated. Subsequent checking of her accounting records revealed the following errors which when corrected eliminated the Suspense account:

(i) A cheque for £260 for acquiring a new display stand on 31 March 2012 has been entered correctly in the Cash Book but posted to the Shop fittings account as £200.

(ii) A credit note from XY Ltd for £60 has not been entered in the Return Outwards Day Book but posted to XY’s a/c as £66.

(iii) Bank charges £21 appearing in the Cash Book are not posted.

(iv) An invoice for £139 for sales to Thompson correctly entered in the Sales Day Book was posted to Thompson as £193.

(v) A debit balance of £223 in Smith’s a/c at 31.3.2012 was carried down as £253 and included in the Trial Balance at that figure.

Required:

(a) Journal entries necessary to correct the errors.

(b) The Suspense account.

(c) Statement of revised profit for the year.

(d) The corrected Statement of financial position as at 31 March 2012.

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Statement of financial position as at 31 March 2012 Non-current assets: Shop fittings Accumulated depreciation Delivery van Accumulated depreciation Current assets: Inventory Trade receivables Cash and bank £ 4 1,500 (300) 1,200 3,200 (800) 2,400 2,917 2,154 1,223 6,294 9,894