Answer Happy

TALLESSAled=1&AnnotationOfUserid=0&IsReadOnly=True&LearningObjectid=308209428&LearningObjectInstanceld-4394339878 MobileBrowser-NoDefined Question B3 The book-keeper of Upholland Retailers extracted a Trial Balance as at the financial year ended 31st March 2021. The book-keeper was unable to balance the Trial Balance finding that debit balances exceeded credit balances by £41. A Suspense Account was opened. The accountant of Upholland Retailers decided to progress with the preparation of a draft Statement of Profit or Loss and calculated the net profit as £121,560. The following errors were subsequently discovered: 1 Cash discount of £156 allowed to Delight Furnishings, an account receivable, was credited to their account as £165 2 The balance of £56,800 on the Vehicles (Cost) Account was listed on the Trial Balance as £56,500 3 Loan interest of £200 charged by the bank was credited to the Bank Account in the Cash Book but was not posted to the Loan Interest Account in the ledger 4 Property repairs amounting to £1,750 had been debited in error to the Property Asset Account 5 The total of the discounts received column £450 had not been transferred at the end of March to the Discounts Received Account in the ledger 6 The Rent Account in the ledger was miscalculated resulting in the account balance being overstated by £100 Required: (a) Draft Journal entries to correct the errors discovered for discounts received [6] and rent. (b [4] Reconstruct the Suspense Account showing the elimination of the original difference in the Trial Balance. (c) [6] Prepare a Statement which will amend the net profit figure per the draft Statement of Profit or Loss following the correction of the errors discovered. (d) Explain how a Suspense Account is presented in a statement of Financial Position [4]