Part D: The balances extracted from the records of Perrod and Company at 31 August 2020 were as follows:

Premises (cost)	7,000
Capital	8,440
Drawings	1,935
Provision for depreciation of office equipment at 1 September 2019	480
Debtors control account	1,891
Creditors control account	2,130
Stock at 1 September 2019	1,200
Purchases	9,480
Sales	14,003
Return inwards	310
Office equipment (cost) (balance at 1 September 2019)	1,600
Wages	1,540
Commission	160
Discount allowed	210
Discount received	121
Bank (credit balance)	980
Cash in hand	56
Heating and lighting	375
Postage and stationary	224
Bad debts	68

A preliminary trial balance was prepared, but, although no arithmetical errors were made, the trial balance did not balance. In seeking the reasons for the difference, the following facts emerged.

1. Debtors control account
   1. No entry had been made in the control account in respect of the debts written off as bad.
   2. A cheque paid by a debtor for 110 had been returned on 31 August 2020 by the bank marked return to drawer. An entry had been made in both bank account and the debtors account for this, but no entry had been made in the control account.
   3. Sales on credit of 97 to A. Jones had been correctly entered in his account but nothing had been entered in the control account.
   4. M. Smith had been allowed a cash discount of 43, but no corresponding entry had appeared in the control account.
2. Creditors control account

This exceeded the balance of the individual creditors accounts by 12. The difference was caused by:

2. 1. Goods returned to R. Hardy costing 69 had been entered correctly in the control account, but no entry had been made in Mr Hardys account.
   2. An invoice for 56 had been incorrectly entered in the control account as 65.
   3. Two credit balances of 45 and 27 had been omitted from the list extracted from the creditors ledger.
3. Some office equipment which had cost 240 had been debited to the purchase account.
4. The wages (1,540) included 320 of personal drawings by the owner of the business.
5. The provision for depreciation of office equipment had been credited in 2019 with straight line depreciation of 10%, i.e. 160, but the depreciation should have been charged at 12.5% per annum.
6. The account for stationary (224) included 45 of personal notepaper for the owner.
7. The returns inwards account had been credited with 90 for some goods returns to a creditor.

You are required to:

1. Prepare the debtors and creditors control accounts, taking into account where appropriate the facts ascertained in (1) and (2) above;
2. Record journal entries to correct the errors and omissions enumerated in (3) to (7) above, using suspense account.
3. Prepare the correct trial balance after all adjustments.