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Part B: [Marks: (15+15) = 30] Question 2: b- On December 31, 2013 Medo extracted a trial balance and found that it did not balance. The debit column totaled $74,600 and the credit column totaled $74,004. Medo entered the difference in a suspense account. Upon investigation he found that the following errors had been made: 1- A purchase for cash of $2,450 had been correctly entered into the cash account but had not been entered into the purchases account. 2-Discounts received of $1,350 had been posted to the debit side of the discounts received account. 3- The purchase of goods for sale of $13,500 paid in cash had been entered in the purchase account as $15,500. 4- The sales day book had been overcast by $1,600. 5- Electricity expenses of $382 paid by cheque had been posted to the debit side of the electricity expenses account as $328. Required: 1- Identify the types of errors noted above. 2- Prepare the journal entries to correct the errors. 3- Prepare the suspense account. [Marks: (7.5+ 7.5+5) = 20) - During the year ended December 31, 2013, Banana Plc made a net profit before tax of $163,200. An analysis of the operating expenses in the Income Statement revealed the following: Selling and distribution expenses 41,000 Depreciation 12,000 Interest paid 7,000 Interest received during the year amounted to $4,300. Analysis of the Balance Sheet of the company for 2012 and 2013 revealed the following working capital movements: Dec 31, 2012 Dec 31, 2013 $ $ Inventory 45,600 38,000 Receivables 60,000 64,000 Cash at bank 21,500 54,000 Payables 16,700 19,000 Required: Using the indirect method, prepare the operating activities section of the statement of cash flows