Q.2 The trial balance information for Nishat Ltd is given below. The auditor while substantive testing found that certain information was misrepresented and therefore upon further investigation found and made opinion to make the appropriate changes. Trial Balance as at 31 December 20X7 Dr Cr E 400,000 350,000 5,000 6,200 100,000 800 30,000 6,000 1,000 40,000 30,000 9,800 7,000 200 179,000 3,000 18,000 593,000 593,000 Sales Purchases Sales returns Purchases returns Opening stock at 1 January 20X7 Provision for doubtful debts Wages and salaries Rates Telephone Shop fittings at cost Van at cost Debtors and creditors Bad debts Capital Bank balance Drawings (i) Closing stock at 31 December 20X7 120,000. (ii) Accrued wages 5,000. (iii) Rates prepaid 500. (iv) The provision for doubtful debts to be increased to 10 per cent of debtors. (v) Telephone account outstanding 220. (vi) Depreciate shop fittings at 10 per cent per annum, and van at 20 per cent per annum, on cost.