Required: (a) Open a suspense account for the difference between the trial balance totals. Prepare the journal entries necessary to correct the errors and eliminate the balance on the suspense account. Narratives are not required. ??????(10 marks) (b) Draw up a statement showing the revised profit after correcting the above errors. (5 marks)

Question One The bookkeeping system of Turner is not computerized, and at 30 September 2019 the bookkeeper was unable to balance the trial balance. The trial balance totals were: Debit sh.1,796,100 Credit sh. 1,852,81'? Nevertheless, he proceeded to prepare draft nancial statements, inserting the difference as a balancing gure in the statement of nancial position. The draft statement of prot or loss showed a prot of sh. 14 l ,280 for the year ended 30 September 2019. He then opened a suspense account for the difference and began to check through the accounting records to nd the difference. He found the following errors and omissions: 1. sh.3,980 the total of the sales returns book for September 2019, had been credited to the purchases returns account. 2. sh.9,600 paid for an item of plant purchased on 1 April 2019 had been debited to plant repairs account. The company depreciates its plant at 20% per annum on a straight line basis, with proportional depreciation in the year of purchase. 3. The cash discount totals for the month of September 2019 had not been posted to the general ledger accounts. The gures were: Discount allowed sh.836 Discount received sh.919. For discounts allowed, it was not anticipated that these customers would take advantage of these cash discounts when the invoices were rst issued. 4. sh.580 insurance prepaid at 30 September 2018 had not been brought down as an opening balance. 5. The balance of sh.38,260 on the telephone expense account had been omitted from the trial balance. 6. A car held as a non-current asset had been sold during the year for sh.4,800. The proceeds of sale were entered in the cash book but had been credited to the sales account in the general ledger. The original cost of the car sh.12,000, and the accumulated depreciation to date sh.8,000, were included in the motor vehicles account and the accumulated depreciation account. The company depreciates motor vehicles at 25% per annum on a straight line basis with proportionate depreciation in the year of purchase but none in the year of sale. Required: (a) Open a suspense account for the difference between the trial balance totals. Prepare the journal entries necessary to correct the errors and eliminate the balance on the suspense account. Narratives are not