Manees Sdn. Bhd. depreciates its machinery at the rate of 20% per annum using straight line method, and 10% for its motor vehicle by using reducing balance method. The depreciation charged for a full depreciation in the year of purchase but no provision is made in the year of disposal. Financial statements are prepared annually to 31 December: 2016 January 15 Bought machine M which cost RM15,000 July 1 Bought machine N for RM12,000. 2017 March 9 Bought motor vehicle Y for RM13,000 and incurred RM500 for the road tax fee during the purchase. 2018 October 31 Sold machine M for RM 8,500 July 5 Bought machine O for RM20,000 2019 March 4 Sold machine N for RM5,400 April 6 Bought motor vehicle Z for RM 9,000 Required: Prepare the following ledger account for the year ended 31 December 2016 until 31 December 2019.

(i) Machinery account (3 marks)

(ii) Motor vehicle account (2 marks)

(iii) Accumulated depreciation account of machinery (4 marks)

(iv) Accumulated depreciation account of motor vehicle (2 marks)

(v) Asset disposal account (4 marks)

(b) While preparing the trial balance, the accountant found out that the amount differs where the credit side more than the debit side. The difference of RM850 then was entered in suspense account and the business proceeds with the preparation of the draft final accounts and these showed a profit of RM20,123. The following errors were consequently found out: Total purchase day book RM6,540 had been posted as RM5,640 in the purchase account. A cash sale of RM 2,000 to Ms Lim was completely omitted from any books. Interest paid RM50 was posted twice to the ledger from cash book. Furniture of RM10,000 for business use had been debited to purchase account. It is companys policy to provide depreciation. Furniture to be depreciated at the rate 10% per annum using straight line method. Debtors control was shown as RM108,448. However: - Mr Tangs debt for RM2300 is uncollectable had not yet written off. - The previous provision for doubtful debts was RM1,800. The company decided to adjust provision for doubtful debts to 2% of debtors control at the end of the year.

Required:

(i) Journal entries to correct the above events. (8 marks)

(ii) Prepare suspense account. (2 marks)

(iii) Prepare statement of corrected net profit.