QUESTION 4 (20 MARKS) The Income Statement before corrections showed the net profit for Hi Tech Maju as RM9,520. The following errors were discovered in the books of the company i. Utilities expenses of RM250 were recorded in the utilities expense account and cash account as RM205. i. A sum of RMS00 paid for repairs of office equipment was wrongly debited to the office equipment account. ii. Purchase of goods worth RM700 from Jane Enterprise was wrongly credited as purchase of goods from Jenny Sdn Bhd. iv. A motor vehicle was bought for RM9S,000 for business use from General Motor but the transaction was not recorded in the books. v. Advertising expense and Service Revenue accounts were both overcast by RM300. vi. Additional investment RMI,500 cash were debited cash account and credited to revenue account Required: a) Prepare journal entries to correct the errors b) Explain the use of suspense account in accounting. e) Prepare Statement of Corrected Net Profit for Hi Tech Maju. (12 marks) (2 marks) (6 marks) END OF QUESTIONS Page 6 of 7 Revision ACCTI002 QUESTION 4 (20 MARKS) The Income Statement before corrections showed the net profit for Hi Tech Maju as RM9,520. The following errors were discovered in the books of the company i. Utilities expenses of RM250 were recorded in the utilities expense account and cash account as RM205. i. A sum of RMS00 paid for repairs of office equipment was wrongly debited to the office equipment account. ii. Purchase of goods worth RM700 from Jane Enterprise was wrongly credited as purchase of goods from Jenny Sdn Bhd. iv. A motor vehicle was bought for RM9S,000 for business use from General Motor but the transaction was not recorded in the books. v. Advertising expense and Service Revenue accounts were both overcast by RM300. vi. Additional investment RMI,500 cash were debited cash account and credited to revenue account Required: a) Prepare journal entries to correct the errors b) Explain the use of suspense account in accounting. e) Prepare Statement of Corrected Net Profit for Hi Tech Maju. (12 marks) (2 marks) (6 marks) END OF QUESTIONS Page 6 of 7 Revision ACCTI002