QUESTION $1[40$ MARKS$]$

Part A

The financial year of the business of Jacky ends on $31$ December of each year. When preparing his trial balance as at $31$ December $2023,$ he found that the total of the debit side and the total of the credit side of the trial balance of the business at $31$ December $2023$ amounted to Rs $247,349$ and Rs $235,042$ respectively. Due to the difference between the debit side total and the credit side total of the trial balance, the business conducted an investigation which revealed the following errors for the financial year ended $31$ December $2023.$

$($a$)$ Goods sold for Rs $400$ on $28$ December $2023$ to a local agent had been correctly entered in the personal ledger but no other entry had been made in the books.

$($b$)$ A discount amounting to Rs $2,400$ provided by the business to a credit customer Lynns$,$ was recorded only on the debit side of the discount allowed account for an amount of Rs $2,400.$

$($c$)$ In October $2023,$ goods sold on credit to Mr Yan amounting to Rs $3,700$ was debited in the account of Mr Yan as Rs $3,700$ and was credited in the sales account as Rs $3,070.$

$($d$)$ Stationery items were bought for Rs $32,500$ by cheque on $23$ December $2023.$ The business debited the cash book and stationery account by Rs $3,500.$

$($e$)$ In the month of July $2023,$ Jacky took goods amounting to Rs $4,300$ for personal use. To record the drawing of goods, the business credited the purchases account by Rs $3,400$ and debited the drawings account by Rs $4,300.$

$($f$)$ In the month of December $2023,$ the business paid an amount of Rs $5,400$ to a supplier, John Ltd$.$ The business recorded this payment of Rs $5,400$ on the debit side of the cash book but the account of John Ltd was credited by Rs $4,500.$

$($g$)$ In December $2023,$ a credit note of Rs $700$ from a supplier, L$.$Dawson had been correctly recorded in the return outwards journal but posted to L$.$Dawson as Rs $777.$

Page $2$ of $8$

REQUIRED:

$($a$)$ Prepare the necessary journal entries to correct the errors. $($Narratives are not required$)$

$(14$ marks$)$

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