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iv. V. Question 2 The trial balance of Nkate-Konto Ltd for the year ended 31* December, 2018 failed to agree and the difference of GHC77,000 was debited to a suspense account. The final accounts were prepared on the basis of the trial balance and showed a net profit of GHC250,000. The following errors were subsequently discovered; i. The sales day book had been overcast by GHC9,000 ii. Discounts allowed of GHC61,200 correctly entered in the sales ledger had been posted to the wrong side of the discounts allowed account in the nominal ledger iii. Cheque received from Auntie Bee, a customer amounting to GHC18,200 was entered correctly in the cash book but credited to the personal account as GHC 12,800 A credit balance of GHC27,000 on the personal accounts of Hamid in the bought ledger had been omitted from the trial balance A credit note of GHC12,600 for goods returned by Benedicta, a customer, had been entered twice in the returns inwards books and credited twice to the personal account of the customer. vi. A payment of GHC39,000 on 30 December for repairs of motor vehicles had been entered in the Motor Vehicles account vii. Part of the company's premises had been let as from 1" December 2018, at a monthly rent of GHC6,000. On 15 December, the tenant paid three months' rent in advance. This amount had been entered in the cash book, but not other entry had been made in any other account In arriving at the net sales and purchases for the year, the GHC48,000 on the returns outwards account had been charged against the sales account and the GHC64,000 balance on the returns inwards account had also charged against the purchases account. ix. A payment of rent, GHC4,000 had been correctly entered in the cash book but debited in the rent account as GHC40,000 Proceeds from the issue of 100,000 shares at GHCO.70 per share had been correctly entered in the cash book but posted to the sales account. vili. x Graham, Prella, Foster & Gabriel (0544277872/02/1672061/0544630755/0242849511) 2 You are required to: a. Write up the journal entries to correct the above errors b. Show the suspense account c. Calculate the amount of net profit after correcting the above errors

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