TUTORIAL 4 (SUSPENSE & ERRORS) QUESTION 1 (10 MARKS) The bookkeeper of Simon Enterprises extracted a trial balance on 31 December 2015 which failed to agree with N$ 330, a shortage on the credit side of the trial balance. A suspense account was opened for the difference. In January 2016 the following errors made in 2015 were found: i) Sales daybook had been undercast by N$100. ii) Sales of N$ 250 to J Cantrell had been debited in error to J Cochrane's account. iii) Rent account had been undercast by N$ 70. iv) Discount Received account had been undercast by N$ 300. The sale of a motor vehicle at book value had been credited in error to Sales account N$360. Ignore VAT and depreciation. REQUIRED: a) Prepare the general journal entries necessary to correct the above errors. Ignore narrations. b) Prepare a suspense account to clear the difference. c) The proprietors pre-accounting profit has been calculated as N$ 7 900. Prepare a working showing the effect on the proprietor's profit (if any) of correcting each of the above errors