The following information relate to the business of Katwishi as at 31-12-16 K'000 Purchases Sales Returns...

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The following information relate to the business of Katwishi as at 31-12-16 K'000 Purchases Sales Returns inwards Returns outwards Debtors 64,700 125,600 6,340 1,900 11,250 Creditors 7,900 Equipment-cost 18,000 Vehicles - cost 9,000 Stock 5,000 Accumulated Depreciation- Equipment 1,500 Accumulated depreciation-Vehicles 600 Carriage inwards 900 Carriage outwards 270 Commission received 300 Repairs 1,300 Electricity 1,800 Wages and salaries 11,000 Rent and Rates 8,700 Interest paid 1,400 Stationery and postage 2,600 Fixed Account Deposit 10,000 Bank deposit account 8,000 Discount received 3,460 Discount allowed 5,760 VAT creditor 1,360 PAYE creditor 500 10% Loan from B.Bull payable in 2035 14,000 Capital 7,100 NOTES Stock on 31/12/16 was valued at K7,000,000 The bookkeeping was done by unqualified bookkeeper. The following errors were discovered at 31/12/16 (a) (b) () (d) A sale of goods to Chanda for K2 500 000 was debited in the sales account and credited in Chanda's account. The discount received column of the cash book for K 500 000 was not posted to the general ledger. The purchases account was overcast by K400 000 and at the same time commission received was undercast by K200 000. Goods sold to Mulenga.C on credit for K200000 were not entered in Mulenga's account. (e) A payment for rent and rates by cheque for K8 700 000 was entered in the cash book as K7 800 000. 03 (f) The account of a customer was undercast by K100 000. (g) K500 000 paid for purchase of old office equipment had been entered in purchases account. (h) A balance of K100 000 owing by a debtor, Chishimba, had been omitted from the list of balances. Required: (a) Prepare a trial balance before the correction of the above errors (b) Prepare journal entries to correct the above errors (5 Marks (5 Marks) (c) Prepare suspense account (5 Marks) (d) Prepare a trial balance after the correction of the above errors (e) Prepare an Income statement for the period (5 Marks) (5 Marks) (f) Prepare a statement of Financial Position (5 Marks) The following information relate to the business of Katwishi as at 31-12-16 K'000 Purchases Sales Returns inwards Returns outwards Debtors 64,700 125,600 6,340 1,900 11,250 Creditors 7,900 Equipment-cost 18,000 Vehicles - cost 9,000 Stock 5,000 Accumulated Depreciation- Equipment 1,500 Accumulated depreciation-Vehicles 600 Carriage inwards 900 Carriage outwards 270 Commission received 300 Repairs 1,300 Electricity 1,800 Wages and salaries 11,000 Rent and Rates 8,700 Interest paid 1,400 Stationery and postage 2,600 Fixed Account Deposit 10,000 Bank deposit account 8,000 Discount received 3,460 Discount allowed 5,760 VAT creditor 1,360 PAYE creditor 500 10% Loan from B.Bull payable in 2035 14,000 Capital 7,100 NOTES Stock on 31/12/16 was valued at K7,000,000 The bookkeeping was done by unqualified bookkeeper. The following errors were discovered at 31/12/16 (a) (b) () (d) A sale of goods to Chanda for K2 500 000 was debited in the sales account and credited in Chanda's account. The discount received column of the cash book for K 500 000 was not posted to the general ledger. The purchases account was overcast by K400 000 and at the same time commission received was undercast by K200 000. Goods sold to Mulenga.C on credit for K200000 were not entered in Mulenga's account. (e) A payment for rent and rates by cheque for K8 700 000 was entered in the cash book as K7 800 000. 03 (f) The account of a customer was undercast by K100 000. (g) K500 000 paid for purchase of old office equipment had been entered in purchases account. (h) A balance of K100 000 owing by a debtor, Chishimba, had been omitted from the list of balances. Required: (a) Prepare a trial balance before the correction of the above errors (b) Prepare journal entries to correct the above errors (5 Marks (5 Marks) (c) Prepare suspense account (5 Marks) (d) Prepare a trial balance after the correction of the above errors (e) Prepare an Income statement for the period (5 Marks) (5 Marks) (f) Prepare a statement of Financial Position (5 Marks)