VB Limited, a chemical company, extracted a Trial Balance from its ledgers on 30 April 2012 and found that the sum of the debit balances did not equal the sum of the credit balances. A Suspense account was opened and used to record the difference. VB Limited does not use Control accounts for its customers and supplier accounts. The company carried out an investigation into the causes of the difference and found the following:

1. Cash sale of £246 has been posted to the debit of Sales returns account.

2. An invoice to a customer for £1,249 had been posted to the customer’s account as £1,294.

3. Bank charges of £37 had not been entered in the Cash Book.

4. Value Added Tax £45 had been included in the sum posted to the purchases account from a supplier’s invoice. 

5. A contra entry of £129 had been debited to the customer account and credited to the supplier account.

6. An invoice for rates for the six-month period ending 30 September 2012 amounting to £13,500 had not been entered in the ledgers and remained unpaid on 30 April 2012.

7. A carriage invoice of £52 had been debited to carriage outwards but it related to the purchase of goods from a supplier of the company.

8. A bad debt of £40 which should have been written off had been forgotten and remained as a balance in the customer account.

9. The purchase on credit of a motor van costing £5,400 before deducting trade-in allowance of £1,200 from an old van had been recorded only by making a debit entry (of £5,400) in the motor van expenses account. The net book value of the old van at the time of the transaction was £1,350.

Required: 

Show the journal entries necessary to correct each of the above (including narrative), and state the effect of each correction on the profit of the company for the year ended 30 April 2012.