10

3 Akil prepared his trial balance at 29 February 2024. The total of the debit side was $83 640 and
the total of the credit side was $84 025.

Akil later discovered the following errors.

1 The total of the sales journal for January 2024, $3416, had been credited to the sales
returns account.

2 A direct debit for insurance, $115, had been credited to both the bank account and the
insurance account.

3 Discount allowed, $47, had been credited to the account for discount received.

4 A payment for office equipment, $52, had been debited to the stationery account.

5 The purchases journal for February had been overcast by $90.

REQUIRED

(a) State

(i) which business document shows when the direct debit for insurance was paid

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(ii) which of the errors listed in 1 to 5 above is an error of principle

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© UCLES 2024 0452/23/M/J/24

(b) Prepare the journal entries to correct errors 1 to 3 only. Narratives are not required.

Akil
Journal
Error Details Debit Credit
number $ $

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[7]

© UCLES 2024 0452/23/M/J/24 [Turn over

(c) (i) State why a balance may remain on the suspense account after errors 1 to 5 have
been corrected.

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(ii) Prepare the suspense account. Bring down any remaining balance at 1 March 2024.

Akil
Suspense account
Date Details $ Date Details $

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[5]

Akil’s draft profit for the year, before correction of the errors, was $17 420.

REQUIRED

(d) Calculate Akil’s profit after items 1 to 5 have been corrected.

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[Total: 20]

© UCLES 2024 0452/23/M/J/24