Self-test In preparing the trial balance for Jay & Co., a difference of £222 was entered as a credit to a suspense account in order to balance the trial balance.

Sometime later, after examining the books the following errors were discovered.

(i) The total of the returns inward book was overcast by £600.

(ii) When writing off a bad debt of £720, the bad debt account was incorrectly debited with £72.

(iii) A cheque for £110 received from a debtor was dishonoured but no entry reflecting this has been made in the books.

(iv) A receipt of £320 from Justin was credited to the account of Austin.

(v) A credit note from I Buy for £360 for goods returned was not entered in the books.

(vi) On 31 December 2009 the quarterly rent of £600, for the period 1 December 2009 to 28 February 2010 was paid. No adjustment has yet been made for the prepayment.

(vii) The total of the discount received column in the cash book of £135 was posted to the debit side of the discount allowed account.

Prepare journal entries for the above adjustments and show the adjustments to the suspense account.

You are required to show the effect of the above errors on the net profit of

£12,380 for the year ended 31 December 2009.