The trial balance as at 30 April 20X7 of Timber Products Limited was balanced by the inclusion of the following debit balance:

Difference on trial balance suspense account £2,513.

Subsequent investigations revealed the following errors:

(i) Discounts received of £324 in January 20X7 have been posted to the debit of the discounts allowed account.

(ii) Wages of £2,963 paid in February 20X7 have not been posted from the cash book.

(iii) A remittance of £940 received from K Mitcham in November 20X6 has been posted to the credit of B Mansell Limited.

(iv) In December 20X6, the company took advantage of an opportunity to purchase a large quantity of stationery at a bargain price of £2,000. No adjustments have been made in the accounts for the fact that three-quarters, in value, of this stationery was in stock on 30 April 20X7.

(v) A payment of £341 to J Winters in January 20X7 has been posted in the personal account as £143.

(vi) A remittance of £3,000 received from D North, a credit customer, in April 20X7 has been credited to sales.

The draft accounts for the year ended 30 April 20X7 of Timber Products Limited show a net profit of £24,760.

Timber Products Limited has very few personal accounts and therefore does not maintain either a purchases ledger control account or a sales ledger control account.

Required:

(a) Prepare the difference on trial balance suspense account showing, where appropriate, the entries necessary to correct the accounting errors.

(b) Prepare a computation of the corrected net profit for the year ended 30 April 20X7 following corrections for the above accounting errors.

(c) Outline the principal uses of trial balances.