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Question 2 The bookkeeper of a firm failed to agree the trial balance at 30 June, the end of the financial year The debit side was $930 less than the credit side. She opened a suspense account into which she entered the amount she was out of balance. The following errors were later discovered in the books: 1. The purchase day book had been under stated by $100 2. Goods bought on credit from A Chan for $50 had been posted to his account as $500. 3. A new machine costing $700 had been posted to the machinery repairs account. 4. S Yuen, a customer, returned goods valued at $200. This has been correctly entered into the returns inwards day book but was later debited into the customer's account the sales day book. ledger although it has been recorded in the cash book posted to the account of Wong Kee, the customer. 5. The sales of some equipment (non current asset) of $3,000 had been mistakenly recorded in 6. $600 being payment of electricity by cheque had been omitted in recoding in the general 7. A discount allowed of $20 had been correctly entered in the cash book but had not been Payment of $450 wages by cash had been completed omitted in recording. 8. Required: a. Prepare the journal entries to correet the errors from (1) to (6 b. Prepare the suspense account in T account format. (16 marks) (6 marks) Total 22 marks) Question 3 (1) A company reports revenue when its goods are sent out to their customers instead of when cash is received. (2) The owner withdrew cash from the business to pay the school fees for his son. The bookkeeper 3) $500 paid for a small cabinet for office use was treated as an expense instead of a non current has debited the amount to the Drawings account. asset. The amount of non current assets in the balance sheet is 50 million. Required: each case above identify the relevant accounting concept or principle and briely explain that accounting concept. Total 9 marks)