6.10 Ian Error has produced a trial balance for his business for the year to 30 September 20X2 that does not balance, and the error has been placed in a suspense account.

An examination of the company’s books reveals the following errors:

(a) An invoice from Zed amounting to £1,000, for goods purchased, has been omitted from the purchases day book and posted direct to the purchases account in the nominal ledger and to Zed’s account in the memorandum purchase ledger. It has not been included in the creditors control account in the trial balance.

(b) The sales day book has been understated by £2,400.

(c) Discounts allowed for the month of June amounting to £4,890 have not been debited to the ledger.

(d) Goods received from Wye on 30 June 20X2, which cost £24,100, have been included in the stock but the invoice has not yet been received and entered in the books.

(e) A cheque for £1,920 received from Exe, a debtor, has been debited to cash and credited to the sales account in the nominal ledger.
(i) Prepare the journal entries to correct these errors.
(ii) Prepare a statement that shows the effect of the corrections on the company’s profit for the year.
(iii) Calculate the difference between the sides of the trial balance that was placed to suspense account.