You have extracted a trial balance on 31 December 2028 which failed to agree by £202, a shortage on the debit side of the trial balance. A suspense account was opened for the difference. In January 2029, the following errors, made the previous year, were found:

a. The returns inwards daybook had been undercast by £60.

b. The purchases account had been undercast by £110.

c. Commission received of £40 had been credited in error to the Sales account.

d. A credit sale of £32 to M Savage had only been entered in the Sales account.

You are required to:

1. Show the journal entries necessary to correct the errors.

2. Draw up the suspense account after the errors have been corrected.

3. If the net profit for the year had previously been £970, produce a statement of corrected net profit for the year ended 31 December 2028 after all the above corrections have been made.