Part 5 Adustments for financial statements Inventory-in-trade at 1 April 2014 Inventory-in-trade at 31 March 2015 Discounts allowed Discounts received Allowance for doubtful debts Purchases Purchases returns Sales Sales returns Freehold property: at cost Provision for depreciation Motor vehicles: at cost Provision for depreciation Capital Thomas Smith Balance at bank Trade accounts receivable Trade accounts payable Establishment and administrative expenditure Drawings 10,700 7,800 450 310 960 94,000 1,400 132,100 1,100 70,000 3,500 15,000 4,500 84,600 7600 11.300 16,600 9,000 239,010 E239,010 Required: (a) Prepare a corrected trial balance es at 31 March 2015. After the preparation of the above trial balance, but before the completion of the final accounts for the year ended 31 March 2015, the following discoveries were made: ) The correct valuation of the inventory-in-trade at 1 April 2014 is 12,000, apparently some inventory lists had been mislaid. A credit note for 210 has now been received from J. Hardwell Limited; this relates to goods returned in December 2014 by Thomas Smith. However, up to now J. Hardwell Limited had not accepted that the goods were not of merchantable quality and Thomas Smith's account- ing records did not record the return of the goods. (i) (iin) Trade sample goods were sent to John Grey in February 2015. These were free samples, 3: but were charged wrongly at 1,000 to John Grey. A credit note is now being prepared to rectify the error In March 2015, Thomas Smith painted the inside walls of his stockroom using materials cost ing 150 which were included in the purchases figure in the above trial balance. Thomas Smith estimates that he saved 800 by doing all the painting himself. (iv) Prepare the journal entries necessary to amend the accounts for the above discoveries. Note: narratives are required (b) (Association of Accounting Technicians)