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crial balance of Mazita, a tr 6 The trial bala entered in a that show a net profit for the uspense account. The trial balance was then used to prepar et profit for the year of RM53,670. Errors and Suspense Account Mazita's books s books comprise the usual books of prime entry, including a two-columna discount columns, and a single general ledger that January 2016 failed to agree. The difference was was then used to prepare draft final accounts 173 with cash discount colum creditors personal accounts A subsequent audit (i) At the books. quent audit revealed the following errors and omissions: At the end of the accounting vear. RM1500 rent expenses were omitted from ge general ledger that contains all the debtors' and ncluding a two-column cash book (i) Cash discount allowed to Mazlan, a debtor, of RM20 has not been entered in the cash book. eht expenses were omitted from the G) Bank charges shown in the cash book as RM430 have been entered in the bank charges account as RM340 in error. (iv) No entries had been made in the books at the end of the accounting year in respect of a stock of stationery that costs RM100. (u) A sales invoice for RM3,000 sent to Thanga has been entered in the sales day book as RM300. (vi) The debit side of the electricity account has been over-cast by RM9. (vii) Interest received of RM250 has been recorded in the books as interest paid. (viii) The total of the sales returns day book has been under-cast by RM900. (ix) A personal computer costing RM2,000 has been debited to the office expenses account erroneously. This was purchased on 1 May 2015. Office equipment is depreciated at 20% p.a on a pro-rated basis using the reducing balance method. (x) The balance on the rent and rates account shown in the ledger as RM10,000 has been entered in the trial balance as RM1,000. Required: a. Prepare the journal entries necessary to correct the above errors and omissions. For each Journal entry, give a short narrative containing the name of the type of error that has occurred. b. Show the entries in the suspense account. c. Prepare a statement showing the revised net profit for the year as at 31 January 2016 d. Briefly explain Briefly explain the reason for preparing a suspense account. I proprietor, for 30 June 2016 failed to agree and a suspense he year ended 30 June 2016 were prepared

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