The draft final accounts of RST Ltd for the year ended 30 April 19_5 showed a net profit for the year after tax of £78 263.

During the subsequent audit, the following errors and omissions were discovered. At the draft stage a Suspense account had been opened to record the net difference.

(1) Trade debtors were shown as £55 210. However,

(i) bad debts of £610 had not been written off,

(ii) the existing provision for doubtful debtors, £1 300, should have been adjusted to 2% of debtors, x

(iii) a provision of 2% for discounts on debtors should have been raised.

(2) Rates of £491 which had been prepaid at 30 April 19_4 had not been brought down on the rates account as an opening balance.

(3) A vehicle held as a fixed asset, which had originally cost £8 100 and for which £5 280 had been provided as depreciation, had been sold for

£1 350. The proceeds had been correctly debited to Bank but had been credited to Sales. No transfers had been made to Disposals account.

(4) Credit purchases of £1 762 had been correctly debited to Purchases account but had been credited to the supplier’s account as £1 672.

(5) A piece of equipment costing £9 800 and acquired on 1 May 19_4 for use in the business had been debited to Purchases account. (The company depreciates equipment at 20% per annum on cost.)

(6) Items valued at £2 171 had been completely omitted from the closing stock figure.

(7) At 30 April 19_5 an accrual of £543 for electricity charges and an insurance prepayment of £162 had been omitted.

(8) The credit side of the wages account had been under-added by £100 before the balance on the account had been determined.

Required:

(a) prepare a statement correcting the draft net profit after tax

(b) post and balance the Suspense account. (Note: The opening balance of this account has not been given and must be derived)