George prepared a trial balance at the end of his business’s financial year on 31 March 2015. However, the totals of the trial balance failed to agree and a suspense account was opened for the difference. George checked the accounting records and discovered the following errors.

• Error 1: The total of the sales journal had been understated by $440.

• Error 2: A payment for carriage inwards $163 had been debited to the carriage outwards account.

• Error 3: The total of the discount received column in the cash book, $378, had been entered on the debit side of the discount received account.

• Error 4: A credit note issued by a supplier, KLZ Ltd. for $239 had been entered in the returns outwards journal as $293.

• Error 5: A credit customer, S. Wilson, had paid $867 by cheque. The entries made for this payment were: debit S. Wilson 76 and credit bank $768.

George is aware that some of these errors did not affect the agreement of the trial balance totals.

a. Identify two of the errors discovered by George which would not have affected the agreement of the trial balance totals and state the type of error in each case.

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

c. Prepare the suspense account showing the original difference in the trial balance totals.