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Question 2 The trial balance of a sole trader failed to agree: Debit RM119,897 Credit...

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Accounting

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Question 2 The trial balance of a sole trader failed to agree: Debit RM119,897 Credit RM110,421 2. 3. The following errors were subsequently found: 1. A cash receipt of RM100 from a customer has been completely overlooked from the cash book A sales return of RM542 has been wrongly posted to the credit of purchase return account, but has been entered correctly in the receivable account. Goods costing RM1,550 taken for personal use has been credited to drawings account and debited to purchases account. 4. A repair bill of RM560 was debited twice to the repairs account. 5. A sales invoice of RM8,540 for Hari has been wrongly recorded in the account of Hadi. 6. A cheque for RM65,132 paid for the purchase of an equipment was debited to the equipment account as RM75,132 The net profit before the adjustment of the errors was RM15.213. Required: a) Identify the type of error for items 1, 3 and 5 above. (3 marks) b) Prepare journal entries to correct each of the above errors. Narratives are not required. (10 marks) c) Open a suspense account to show the corrections. (4 marks) d) Calculate the net profit after adjusting for the errors. (3 marks) Total: 20 marks a) c) )

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