Karl owns a business that makes personalised stationery. His financial statements had a draft net profit of 23,530 before he accounted for the following 1. A credit sale of 535 has been omitted from the accounts 2. A contra of 1,000 with a supplier has not been recorded. 3. When he had to replace the motor belt on his binding machine, he was unsure whether to treat it as capital or revenue, so when posting the cost of 225 to the cash account, he put the other side of the entry into a suspense account 4. Karl realised that when doing the year end stock count he omitted some leather worth 189 that he was storing at his house. 5. An amount of 1,270 due from a customer has been outstanding for over six months and Kari has now received a letter saying the company is in liquidation Requirement a) Prepare the journals to record the adjustments required as a result of the 5 issues above (10 marks) b) The five elements of financial statements are asset, liability, equity, income and expenses Define an asset aliability and give one example of each