The Trial Balance stated below was extracted from the books of Joe’s Retail on the last day of its accounting period, having placed in a Suspense account the amount by which it failed to balance. Subsequent inquiries revealed as follows:

(a) A folio of the Sales Journal was undercast by £30,000.

(b) Goods included in Purchases at £24,000 were not included in the Inventory because they remained in transit on the day of the count.

(c) £12,000 paid as sales commission was posted as £21,000.

(d) One month’s rent of £3,000, prepaid as at 1 July 2011, has been brought forward in the Rent account as a credit balance.

(e) Salary and rent, amounting to £36,000 and £6,000 respectively, remain unpaid as at 30 June 2012.

(f) Goods costing £16,000 removed by Joe for his own use have not been accounted for.

Required:

(a) Journal entries for correcting the errors and making adjustments.

(b) The Statement of income for the year ended 30 June 2012 and the Statement of financial position as at that date.

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Trial Balance as at 30.6.2012 Non-current assets Accumulated depreciation Depreciation Rent Salaries Sales Cash and bank Inventory - 30.6.2012 Sales commission Receivable/payable Cost of sales Advertising Drawings Telephone/postage Stationery Capital Suspense account £'000 £'000 2,460 369 24 476 133 416 78 396 1,708 84 115 28 17 - 6,304 1,640 2,872 509 1,250 33 6,304