The draft final financial statements of RST Ltd for the year ended 30 April 20X9 showed a net profit for the year of £78,263.
During the subsequent audit, the following errors and omissions were discovered. At the draft stage a suspense account had been opened to record the net difference.
1. Trade receivables were shown as £55,210. However:
a. irrecoverable debts of £610 had not been written off;
b. the existing allowance for irrecoverable debts, £1,300, should have been adjusted to
2 per cent of trade receivables;
c. an allowance of 2 per cent for discounts on trade receivables should have been raised.
2. Rates of £491, which had been prepaid at 30 April 20X8, had not been brought down on the rates account as an opening balance.
3. A vehicle held as a non-current asset, which had originally cost £8,100 and for which £5,280 had been provided as depreciation, had been sold for £1,350. The proceeds had been correctly debited to bank but had been credited to sales. No transfers had been made to a disposals account.
4. Credit purchases of £1,762 had been correctly debited to the purchases account but had been credited to the supplier’s account as £1,672.
5. A piece of equipment costing £9,800 and acquired on 1 May 20X8 for use in the business had been debited to the purchases account. (The company depreciates equipment at 20 per cent per annum on cost.)
6. Items valued at £2,171 had been completely omitted from the closing inventory figure.
7. At 30 April 20X9 an accrual of £543 for electricity charges and an insurance prepayment of £162 had been omitted.
8. The credit side of the wages account had been under-added by £100 before the balance on the account had been determined.

Required
Using relevant information from that given above:
a. Prepare a statement correcting the draft net profit.
b. Post and balance the suspense account.