14* Miscup showed a difference on their trial balance of 14,650. This was posted to a suspense account so that the financial statements for the year ended 31 March 209 could be prepared. The following statement of financial position was produced: On checking the books to eliminate the suspense account you find the following errors: 1. The debit side of the cash book is undercast by 10,000. 2. A credit item of 5,000 in the cash book on account of a new building has not been posted to the nominal ledger. 3. The purchases day book has been summarized for posting to the nominal ledger but an item of purchases of 100 has been entered in the summary as 1,000 and a further transport charge of 450 has been entered as 45. 4. An item of rent received, L45, was posted twice to the nominal ledger from the cash book. 5. The debit side of the sales ledger control account was undercast by 100. 6. On reconciling the bank statement with the cash book, it was discovered that bank charges of 3,250 had not been entered in the cash book. 7. Depreciation of motor vehicles was undercharged by 500. 8. Inventories were undervalued by 1,250. 9. Suppliers' invoices totalling 2,110 for goods included in inventory had been omitted from the books. Required a. Show the journal entries necessary to eliminate the balance on the suspense account. b. Show the statement of financial position of Miscup as at 31 March 20X9, after correcting all the above errors. 14* Miscup showed a difference on their trial balance of 14,650. This was posted to a suspense account so that the financial statements for the year ended 31 March 209 could be prepared. The following statement of financial position was produced: On checking the books to eliminate the suspense account you find the following errors: 1. The debit side of the cash book is undercast by 10,000. 2. A credit item of 5,000 in the cash book on account of a new building has not been posted to the nominal ledger. 3. The purchases day book has been summarized for posting to the nominal ledger but an item of purchases of 100 has been entered in the summary as 1,000 and a further transport charge of 450 has been entered as 45. 4. An item of rent received, L45, was posted twice to the nominal ledger from the cash book. 5. The debit side of the sales ledger control account was undercast by 100. 6. On reconciling the bank statement with the cash book, it was discovered that bank charges of 3,250 had not been entered in the cash book. 7. Depreciation of motor vehicles was undercharged by 500. 8. Inventories were undervalued by 1,250. 9. Suppliers' invoices totalling 2,110 for goods included in inventory had been omitted from the books. Required a. Show the journal entries necessary to eliminate the balance on the suspense account. b. Show the statement of financial position of Miscup as at 31 March 20X9, after correcting all the above errors