Question 2 (Total: 23 marks) Hamid calculated his net profit for the year as RM151,772, but is not sure how to treat the RM900 (debit) balance on the suspense account. Control accounts are not maintained. On reviewing Hamid's records you note the following errors and omissions: i. A cash sale for RM1,800 was recorded in the cash book, but no other entry was made. ii. A cheque received from a customer for RM23,400 was accepted in full settlement of a balance of RM23,580. No entries were made for the discount. iii. The purchase daybook was undercast by RM1,800 but entries to the suppliers' accounts were posted correctly. iv. Travel expenses included payment of RM810 for Hamid's holiday. v. A cheque paid to a supplier was correctly entered in the cash book as RM5400, but RM4500 was posted to the supplier's account. Required a) (i) Show the joumal entries to correct the errors and omissions. (5 marks) (ii) Indicate whether or not Hamid's calculation of net profit was affected by the errors, and calculate his corrected net profit for the year. (5 marks) (iii) Show Hamid's suspense account including the correction of the errors. (2 marks)

Q&A Education