Case - 5: Gulf Greetings is a holding company based in Dubai has started its operations in Oman in January 1, 2020. It has 2 branches in Oman - Muscat and Ibra. The bookkeeper of the Ibra branch has caused the following errors in the books of the branch. i. Rent Expense Account was overcast by OMR 100. ii. Supplies expense of OMR 400 paid is debited in Supplies Asset Account OMR 400. iii. Interest Expense of OMR 500 due is correctly debited as Interest Expense Account but not credited in Interest Payable Account iv. Credit purchase of merchandise inventory OMR 8,000 is debited in Purchase Account as OMR 80,000 A debit balance of OMR 12,500 in Plant Account is carried forward to next page as OMR 12,300 Debit. vi. Service Revenue received in advance OMR 600 is not recorded. vii. Utility expense paid OMR 10 is posted twice. viii. An excess debit in Machinery Account OMR 30,000 is compensated by an excess credit in Accumulated Depreciation - Machinery Account OMR 30,000. ix. Closing stock is overstated by OMR 5,000. Depreciation on building OMR 4,000 is posted to Depreciation of Furniture Account OMR 400 V. X. Question - 5: a. For each of the above errors, you are required to; i. Identify the type of error and ii. Rectify the errors. b. Will the following errors affect the profitability of a company? Explain. i. Error of Complete Reversal ii. Error of Casting iii. Error of Posting (2 Marks)